BNZ is the latest bank to trim fixed mortgage rates.
It was the original adopter of the six month 5.99% rate to where most of the rest have now shifted.
And Wednesday, they have set a new low benchmark of 5.29% for a two year carded fixed rate. This is the lowest fixed rate for any bank at present, even lower than Heartland Bank's two year offer. BNZ last had a two year rate this low in June 2022.
BNZ's other reductions just allow it to keep pace with its main rivals. But its new aggressive two year rate is interesting.
BNZ has not announced any matching term deposit rate changes although some are expected. It's only one of two main banks (with Kiwibank) with a 5% term deposit (TD) rate offer still in the market. Given the 5.29% two year fixed mortgage rate, it is hard to see how BNZ can maintain a 5% TD offer.
Generally, home loan rate cuts are 'funded ' by savers, so we won't be surprised to see changes from BNZ come through soon.
Borrowers should not expect much flexibility by banks on below-card discounts. The option for cashbacks are probably closing fast now too.
Wholesale rates are now basically stable, limiting the funding option of chasing wholesale down. That option is closed off at present.
The reader-reported mortgage rates are fluid and may be less frequent now, so please record them, if you have them. 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.
And still 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 January 22 2025 | % | % | % | % | % | % | % |
| ANZ | 5.99 | 5.57 | 5.39 | 5.44 | 5.59 | 6.19 | 6.19 |
| current reader-reported rates | 5.89 | 5.55 | 5.39 | 5.44 | 5.59 | ||
 |
5.99 | 5.59 | 5.39 | 5.49 | 5.59 | 5.79 | 5.79 |
| current reader-reported rates | 5.95 | 5.59 | 5.39 | 5.49 | 5.59 | 5.69 | |
 |
5.99 | 5.59 -0.20 |
5.39 -0.20 |
5.29 -0.30 |
5.69 | 5.79 | 5.89 |
| current reader-reported rates | 5.95 | 5.58 | 5.39 | 5.29 | 5.55 | 5.59 | 5.79 |
 |
6.15 | 5.79 | 5.59 | 5.69 | 5.79 | 5.89 | |
| current reader-reported rates | |||||||
 |
5.99 | 5.79 | 5.69 | 5.49 | 5.59 | 5.59 | 5.59 |
| current reader-reported rates | 5.99 | 5.59 | 5.39 | 5.49 | 5.59 | 5.59 | 5.59 |
| 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 (*=FHB only) | 5.99 | 5.49* -0.30 |
5.49 -0.20 |
5.49 -0.10 |
5.69 | 5.79 | 5.79 |
| Heartland Bank | 5.49 | 5.39 | 5.39 | 5.45 | |||
| ICBC | 5.99 | 5.79 | 5.59 | 5.59 | 5.59 | 5.59 | 5.59 |
 |
6.24 | 5.89 | 5.59 | 5.49 | 5.69 | 5.69 | 5.69 |
 |
6.19 | 5.69 | 5.79 | 5.59 | 5.59 | 5.69 | 5.69 |
Fixed mortgage rates
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