BNZ has moved some key fixed rates up, closing the gap to its main rivals. In the background, all the pressures on benchmark rates, both locally and internationally, are up

BNZ has raised some fixed home loan rates, ending the rate advantages it had with its main rivals.

It's 18 month fixed rate is up +10 bps to 4.95% and now matching ASB as the lowest of the main banks for this term.

Its two year fixed rate is also up +10 bps to 5.19%, matching Westpac as the lowest of the main banks.

And its three year fixed rate is up +10 bps as well, to 5.39% and that puts it above the Westpac 5.29% for that term.

Where our fixed rates go from here will depend on a number of indirect moving parts. Foreign influences are key, but local influences are still important.

The latest RBNZ data shows robust mortgage loan demand, far more resilient than for business borrowing or rural borrowing. And this comes as the real estate market falls away on a seasonal basis for new transactions, and displays weakness on a price basis.

The other big influence locally is inflation (both consumer and producer). The RBNZ will be watching with concern and although markets don't expect any OCR rate hike at the May 27 review, they do expect rates to rise from current levels at the following review, and maybe the five consecutive reviews thereafter, pricing for an eventual OCR at 3.50% in a year. Remember, the OCR is currently only at 2.25%.

Influences from outside the country are pretty clear as well. And these could see fixed rates for 1 year and longer rises sooner than the RBNZ's influences. The overnight resumption of hostilities (low level that they may be) has raised global benchmark rates, and that will affect our longer swap rates.

And later today, markets expect the RBA to raise their cash rate target by +25 bps to 4.35%. There could be an echo in our rates from this too.

All these pointers suggest our interest rates will rise over the next year. So borrowers who 'wait' could well be facing higher repayments.

BNZ did not announce any changes to term deposit rates at the same time as this home loan rate adjustment.

To compare mortgage rate offers in a way that includes the application and account fees costs, (or break fee costs if you need to do that), and applying the impact of a cashback/legal fee reimbursement, or other incentives, you can use our home loan comparison calculator. You can find it here. Or, for convenience, we have added it to the bottom of this article.

Negotiate, (even with your mortgage broker). How flexible banks may be will depend on the strength of your financials.

One other useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is here.

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees will be minimal in a rising market.

Here is the snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at May 5, 2026	%	%	%	%	%	%	%
ANZ	4.49	4.69	4.99	5.29	5.49	6.19	6.29
	4.49	4.65	4.95	5.25	5.49	5.69	5.89
	4.49	4.65	4.95 +0.10	5.19 +0.10	5.39 +0.10	5.59	5.79
	4.49	4.65		5.29	5.55	5.89	5.99
	4.49	4.69	4.99	5.19	5.29	5.39	5.59
Bank of China	4.38	4.48	4.68	4.78	5.08	5.38	5.58
China Construction Bank	4.40	4.49	4.49	4.54	4.90	5.10	5.20
Co-operative Bank	4.59	4.65	4.99	5.29	5.49	5.75	5.89
ICBC	4.39	4.49	4.65	4.89	5.15	5.45	5.65
	4.49	4.69 +0.10	4.95 +0.10	5.19 +0.10	5.29	5.55	5.69
	4.59	4.59	5.09	5.19	5.49	5.69	5.79