A third bank moves to higher fixed mortgage rates, but a flatter set from two years fixed and longer. BNZ's move leaves a short window of opportunity to access currently lower ASB and Kiwibank home loan rates

BNZ is the next major bank to raise fixed home loan rates. It's new higher rates are effective today (Wednesday, August 5).

It increased all its fixed rates other than its 5.49% five year rate.

It did not announce term deposit rate changes at the same time, unlike ANZ or Westpac.

BNZ's mortgage rate increases match either ANZ or Westpac's earlier rises and show the distinctly flatter pattern of rates two years and longer that Westpac started to show, but BNZ's settings are clearer in this regard. BNZ's new two year fixed rate is now 5.45%, the same as for three and four years, and their five year carded rate is unchanged at 5.49%.

These changes leave ASB and Kiwibank with the older, lower carded rate offerings - for now at least.

Of the main banks, the lowest 6 month carded rate is currently Kiwibank's 4.65%.

For one year fixed, both ASB and Kiwibank have 4.75% still. ASB has an eighteen month 5.09% rate. For two years, the lowest main bank rate is Kiwibank's 5.19%. For three years it is ASB's 5.29%.

It seems unlikely the Kiwibank and ASB rates will last at current levels much longer.

But you can still get lower rates from the challenger banks, especially the Chinese ones. Banks like the Cooperative Bank, SBS Bank and TSB are not so directly affected by swap rate shifts. Their cost of funds are more influenced by what they pay depositors. So for them, the reaction of their deposit base will play a key role in how they set home loan rates.

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 5 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
	4.79 +0.10	4.99 +0.20	5.29 +0.20	5.45 +0.16	5.45 +0.16	5.45 +0.06	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