The first crack in the dam appears with the Red Bank raising home loan and some term deposit rates in response to higher wholesale rate moves

In response to rising wholesale interest rates, Westpac NZ is the first bank to shift fixed home loan rates higher in this cycle.

Its new levels are increases of between six basis points (bps) and 26 bps.

And Westpac now has rates above main rivals for terms of one year through three years.

This certainly is the first 'crack in the dam'.

The wholesale rate track has moved up notably in the past week or so, mostly on geopolitical influences. We have also noted that a new long term trend may have started, ending the 25 year down-trend, and the next long term trend will likely reverse the direction. Geopolitical risk raises the premium those who provide the capital require, and there are a growing range of long-term risks appearing. It is a trend that is completely agnostic to what is going on in New Zealand.

Other local banks are sure to follow Westpac because they face the same pressure, and will no doubt appreciate that someone else has gone first.

At the same time, Westpac has raised its 18 month term deposit (TD) rate by 20 bps to 4.20% and its three year TD rate by 10 bps to 4.40%. But it hasn't changed any TD rate in the popular six month to one year range.

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 July 28 2026	%	%	%	%	%	%	%
	4.69	4.79	5.19	5.29	5.49	6.39	6.49
	4.69	4.75	5.09	5.25	5.29	5.49	5.59
	4.69	4.79	5.09	5.29	5.29	5.39	5.49
Kiwibank	4.65	4.75		5.19	5.39	5.59	5.69
	4.69	4.99 +0.20	5.35 +0.26	5.35 +0.26	5.35 +0.06	5.39	5.49
Bank of China	4.38	4.58	4.68	4.88	5.18	5.48	5.68
China Construction Bank	4.40	4.49	4.49	4.54	4.90	5.10	5.20
Co-operative Bank	4.69	4.79	5.09	5.29	5.49	5.69	5.79
ICBC	4.39	4.49	4.75	4.99	5.25	5.45	5.65
	4.69	4.69	5.09	5.29	5.29	5.39	5.49
	4.69	4.79	5.19	5.25	5.59	5.89	5.99