Although BNZ's latest home loan rate moves are not to especially unique levels, their raising of rates at the long end signal a different shape in the rate curves

BNZ is the next to move fixed home loan rates.

But while its changes are not market-leading for rates two years and shorter, they are pushing out the boat at the long end.

They have raised 4 and 5 year fixed rates, reflecting the shift in interest rate curves. It seems that others will follow.

International benchmark rate curves have been steepening recently, although that has so far been more of an unwind of the rate inversions we have had since mid-2022.

Wholesale swap rates have followed the same pattern and now one and five year wholesale rates are very similar.

So it perhaps should be no surprise that BNZ's one and five year fixed rates are little-different too, after this change.

The New Zealand 1-5 mortgage rate inversion has been around since April 2023. The availability of lower long rates is coming to an end.

It is just a guess of course, but the new uncertainties in the American economy seem likely to extend the trend of rising long rates if only because of the volatility expected in the US Federal budget. Benchmark UST 10 year yields fell over a long period from the early 1980s until the first Trump Administration. Since then they have turned higher. In fact recently they have risen from the pre-election low of 3.70% to today's 4.20%.

And locally, the focus of using only short rates for home loans will continue, especially if the RBNZ makes another outsized OCR rate cut at their February 19, 2025. That will build back the 'normal' rate curve back too.

BNZ's new four and five year fixed rates are now among the highest from most banks.

BNZ did not announce any matching term deposit rate changes 

The comparison rate summaries below are for carded rates. But carded rates are one thing. Actual off-card rates are often lower.

The reader-reported mortgage rates are fluid so we need you to record them in the comment section below, which helps us stay on top of this fast-changing corner of the home loan rates market

Almost all banks will have some flexibility in their rate offers. So the carded rates are just the start. Negotiate. How flexible they may be will depend on the strength of your financials.

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

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. But they become important in a falling market, like now.

Here is the updated 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 December 3. 2024	%	%	%	%	%	%	%
ANZ	6.24	5.79	5.59	5.59	5.59	6.19	6.19
current reader-reported rates		5.59	5.39	5.39
	6.19	5.79	5.59	5.49	5.59	5.79	5.79
current reader-reported rates	5.99	5.79	5.59	5.49	5.59	5.69	5.69
	5.99	5.79 -0.16	5.59 -0.30	5.59 -0.10	5.69	5.79 +0.20	5.89 +0.30
current reader-reported rates
	6.49	5.79		5.69	5.69	5.69	5.69
current reader-reported rates
	6.19	5.79	5.69	5.49	5.59	5.59	5.59
current reader-reported rates
Bank of China	6.65	5.99	5.79	5.69	5.69	5.49	5.49
China Construction Bank	6.50	5.99	5.79	5.69	5.69	6.40	6.40
Co-operative Bank	6.19	5.79	5.69	5.59	5.69	5.69	5.69
Heartland Bank		5.65	5.59	5.55	5.55
ICBC	6.39	5.99	5.79	5.65	5.59	5.49	5.49
	6.60	6.15	5.79	5.69	5.69	5.69	5.69
	6.45	5.69	5.89	5.69	5.69	5.69	5.69