Kiwibank joins BNZ with some home loan rate cuts and hikes, matched with term deposit rate cuts (but no hikes)

Kiwibank is joining BNZ in raising longer term fixed home loan rates. But it's bringing its six-month rate back to 6.15% and more in line with its rivals.

And at the same time, Kiwibank is cutting its term deposit (TD) rates for terms four-months to one-year. These changes mean Kiwibank only has a 5%+ rate for a six month term. All the rest have gone at Kiwibank.

These changes are part of a general move to steeping interest rate curves.

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 we are seeing this starting at retail banks too.

And if the trend continues, it might be reasonable to expect longer term TD rates rising slightly at some point. Low loan demand, however, undercuts the pressure.

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

The comparison rate summaries below are for mortgage carded rates. But carded, or advertised, 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 9. 2024	%	%	%	%	%	%	%
ANZ	6.24	5.79	5.59	5.59	5.59	6.19	6.19
current reader-reported rates	5.99	5.69	5.59	5.49	5.59	5.59	5.59
	6.19	5.79	5.59	5.49	5.59	5.79	5.79
current reader-reported rates	5.99	5.75	5.59	5.49	5.59	5.69	5.69
	5.99	5.79	5.59	5.59	5.69	5.79	5.89
current reader-reported rates
	6.15 0.34	5.79		5.59 -0.10	5.69	5.79 +0.10	5.89 +0.20
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	6.19	5.79	5.59	5.49	5.49	5.49	5.49
China Construction Bank	6.24	5.79	5.59	5.59	5.59	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	5.39	5.39	5.45
ICBC	6.39	5.99	5.79	5.65	5.59	5.49	5.49
	6.24	5.89	5.59	5.49	5.69	5.69	5.69
	6.19	5.69	5.79	5.59	5.69	5.69	5.69