ANZ New Zealand is following Westpac NZ with higher fixed home loan rates, effective Thursday.
All ANZ fixed mortgage rates from six months to three years are rising, by between 10 basis points (bps) and 26 bps.
Although the 20 bps rise for a one year fixed rate lifts it to 4.99% to match Westpac, in fact ANZ's other rises are to levels higher than Westpac's July 28 increases.
This pushes ANZ's carded rates to the highest of any bank for every fixed term. Only that 4.99% one year rate matches another bank (Westpac), otherwise they have the distinction on their own, apart from the Co-operative Bank's three year 5.69% rate.
Driving the rise are wholesale money costs. Swap rates have stayed sticky at the higher levels they rose to in mid-July. Internationally, benchmark rates have kept these rates elevated.
Banks can fund their lending from wholesale sources. Or from customer deposits. They are agnostic about where that funding comes from, so long as they meet regulator requirements of core funding and mismatch ratios. So it should be no surprise that they have also raised some term deposit rates and these rises range from 10 bps to 30 bps. These are effective Wednesday.
The larger 30 bps rises are for 18 month and two year term deposit commitments, fixed periods that savers have never shown much enthusiasm for.
ANZ's higher term deposit rates only just match Westpac's existing offers and don't really improve on those.
Other local banks are sure to follow Westpac and ANZ because they face the same pressure, and will no doubt appreciate others have gone first.
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 August 6 2026 | % | % | % | % | % | % | % |
 |
4.79 +0.10 |
4.99 +0.20 |
5.45 +0.26 |
5.49 +0.20 |
5.59 +0.10 |
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 | 5.35 | 5.45 | 5.35 | 5.39 | 5.49 |
| Bank of China | 4.38 | 4.58 | 4.68 | 4.88 | 5.18 | 5.48 | 5.68 |
| China Construction Bank | 4.35 | 4.49 | 4.49 | 4.64 | 4.90 | 5.10 | 5.20 |
| Co-operative Bank | 4.69 | 4.84 | 5.19 | 5.39 | 5.69 | 5.89 | 5.99 |
| ICBC | 4.39 | 4.49 | 4.75 | 4.99 | 5.25 | 5.45 | 5.65 |
 |
4.69 | 4.79 | 5.09 | 5.29 | 5.29 | 5.39 | 5.49 |
 |
4.69 | 4.79 | 5.19 | 5.25 | 5.59 | 5.89 | 5.99 |
Fixed mortgage rates
Select chart tabs
Daily swap rates
Select chart tabs
5 Comments
Whether you think higher interest rates are a good thing or not, surely you agree that economic growth is looking unlikely in the near future if rates keep increasing. It looks like yet another round of business closures and unemployment to come.
Agreed. The underlying growth isn't sufficient to offset more household cost increases.
It feels like the RBNZ are on a seesaw; one minute they are trying to revive the economy, the next they are trying to kill it.
I think we will see some (very delayed) negative GDP figures later in the year and they will go back to rates drop mode.
Not when all the downstream crude oil and gas derivitives/byproducts, go to the moon, in a delayed fashion.
Especially Fertilizer pricing up big......food inflation will be roiling us for years!
Higher rates are the future. Get used to it!
Not unless it’s stagflation. GDP could fall and the RBNZ will be in no position to drop interest rates as CPI will (most probably) still be >3% ie outside their mandated band.
It’s the opposite cycle of the 1980 - 2020 period where to stimulate the economy the RBNZ just needed to drop interest rates. Now, it’s quite possible going forward, that to ‘stimulate’ the economy (or should we say to ‘regulate’) we need higher interest rates in order to reduce inflation (as we are entering inflationary recessions, not deflationary recessions). As I’ve said before - take a look at the post WW2 global economy through to the 1980’s.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.