
Heartland Bank has now moved to take the market-leading positions for fixed home-loan rates for all terms from one to three years.
These latest cuts position it 20 to 30 basis points lower than the main banks. And at these levels they are also lower than reader-reported main-bank app rate offers.
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. But this probably doesn't apply to Heartland Bank who solely have an online offer.
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 4. 2024 | % | % | % | % | % | % | % |
ANZ | 6.24 | 5.79 | 5.59 | 5.59 | 5.59 | 6.19 | 6.19 |
current reader-reported rates | 5.99 | 5.59 | 5.39 | 5.39 | |||
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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 |
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5.99 | 5.79 | 5.59 | 5.59 | 5.69 | 5.79 | 5.89 |
current reader-reported rates | |||||||
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6.49 | 5.79 | 5.69 | 5.69 | 5.69 | 5.69 | |
current reader-reported rates | |||||||
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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 | 5.49 -0.16 |
5.39 -0.20 |
5.39 -0.16 |
5.45 -0.10 |
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ICBC | 6.39 | 5.99 | 5.79 | 5.65 | 5.59 | 5.49 | 5.49 |
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6.60 | 6.15 | 5.79 | 5.69 | 5.69 | 5.69 | 5.69 |
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6.45 | 5.69 | 5.89 | 5.69 | 5.69 | 5.69 | 5.69 |
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12 Comments
Kiwibank app is showing me exactly the same as those in the table. I'm not happy about how uncompetitive their 6 month rate is.
I am re-fixing for 6-month with Kiwibank.
They offered to match at 5.99%.
Jarrod wants lower rates, but won't give em to us.
I've taken the 5.99% for 6 months from today, pretty sure the next refix will start with a 4...
Looks like a few people are re-fixing at 6months. Rationale on that please guys?
I have about 500k rolling over on 23rd Jan, do I:
1) Float until RBNZ review in Feb
2) Fix 6mths
3) Fix 1yr
Cheers
I calculated three scenarios:
- Float only
- Float + fixed
- Fixed only - 2 X 6-months, 1 X 1-year rate
I found the floating and splitting the mortgage into a fixed and float components to be unhelpful.
Float only makes sense if one is expecting a large sum of money to cancel the float portion.
Having eliminated #1 and #2, I found doing 2 X 6-month (assuming 6month rates of 5.99% and 5.50% and a 1-year rate of 5.79%), option saving me money in interest.
If I changed my 1-year rate assumption to 5.50%, then this term rate save me money.
Split into $250k lumps, ok thanks for that.
Isn't it better if refinancing end of Jan, to float for a few weeks in the expectation that they cut another 50bps in Feb meeting then fix for 1 year at (hopefully) 5.10%? Or am I missing something?
That was my thinking when suggesting option 1)
Dunno...
Rates haven't moved much after the last OCR. People point to wholesale swap rising, Trump etc...
The difference ain't much for 6m or 1 y, id guess rates won't be properly lower until next June.
Westpac carded rate still 5.79. Spoke to them today and they would not budge (12 months).
Hoping a few more banks drop their rates so they are forced to match.
Same here with ASB. Carded rates still= in app rates. Boo Hiss.
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