A set of home loan rate changes are now in place from all main banks, repricing to reflect a steeper rate curve. A slower real estate market means fewer transactions to compete for

More banks have rolled out changes to fixed home loan rates, but all the latest revisions are really just tweaks that embed a steeper rate curve.

The latest to change is BNZ who cut their one year rate to match their rivals, and cut their two year fixed rate to 2.55% which is below all the other main banks except Kiwibank.

And they raised their four and five year rates into line with most others.

BNZ is following Westpac who announced changes earlier to their one year rate.

And Westpac followed Kiwibank who changed on Monday. Kiwibank followed ANZ, who in turn responded to ASB which was the bank that kicked off this latest realignment.

Update: Both TSB and the Co-operative Bank have announced changes too, and the table below includes them.

Essentially we are seeing short-term rates (2 years and shorter) being trimmed, with rates for three years and longer are being raised.

This shift is in response to two pressures on wholesale rates. The longer term wholesale rates are rising in response to rising international benchmarks as the global economy makes a surprisingly strong V-shaped recovery.

Meanwhile short term rates are being restrained by the RBNZ; their stand in the secondary bond market to keep yields low, plus their offer of 0.25% three year money under their Funding for Lending program. Most banks except ANZ have availed themselves of a little bit of the $28 bln on offer. So far only $2.85 bln has been taken up however.

One useful way to make sense of these new changed home loan rates is to use our full-function mortgage calculators. (Term deposit rates can be assessed using this calculator.)

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.

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

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at May 5, 2021	%	%	%	%	%	%	%
ANZ	3.39	2.25	2.45	2.59	2.89	3.90	3.99
	2.99	2.25	2.49	2.59	2.89	3.19	3.39
	3.39	2.25	2.49	2.55	2.79	3.09	3.39
	3.55	2.35		2.55	2.79	3.09	3.39
	4.15	2.25	3.25	2.59	2.89	3.19	3.39
Bank of China	3.45	2.35	2.45	2.55	2.75	2.85	2.95
China Construction Bank	4.70	2.65	2.65	2.65	2.80	2.89	2.99
Co-operative Bank (*FHB only)	2.25	2.09*	2.59	2.59	2.79	3.09	3.39
Heartland Bank		1.99		2.35	2.45
HSBC	2.79	2.25	2.25	2.35	2.65	2.79	2.89
ICBC	2.89	2.25	2.35	2.35	2.65	2.89	2.99
	3.39	2.29	2.39	2.49	2.79	2.99	3.19
[incl Price Match Promise]	2.89	2.25	2.45	2.49	2.79	3.09	3.39

You should note that BNZ no longer offers a seven year fixed rate.