Because it was so clearly signaled, banks have been quick to announce their rate cuts following Wednesday's Reserve Bank Official Cash Rate cut.
This page tracks these follow-on cuts and will be updated as they come through.
| was | cut | Now | effective* | |
| % | bps | % | ||
| ANZ | 7.39 | -50 | 6.89 | March 5 |
| ASB | 7.39 | -50 | 6.89 | February 28 |
| BNZ | 7.44 | -50 | 6.94 | February 26 |
| Kiwibank | 7.25 | -50 | 6.75 | March 10 |
| Westpac | 7.39 | -40 | 6.99 | March 10 |
| Cooperative Bank | 6.95 | -50 | 6.45 | February 21 |
| Heartland Bank | 6.99 | -50 | 6.49 | March 5 |
| SBS Bank | 7.49 | -50 | 6.99 | March 21 |
| TSB | 7.39 | -50 | 6.89 | March 3 |
| * effective for existing borrowers. For new clients, most banks have them effective sooner. |
||||
If you are an existing customer, you can ask your bank to apply the reduction sooner than their effective date listed above. They should, because the delay is only because banks are under an obligation to give advance notice of a change. But that is only meaningful in the case of a rise. They will give a new client the lower rate immediately.
You don't need to engage a mortgage broker to do this, although you could. But be aware, mortgage brokers have a conflict of interest; they would be paid a commission by the bank if they steer you away from your existing bank but would earn nothing if you stay.
Mortgage brokers are paid by the bank, and they are not subject to the same restraints as bank employees. They live off churn (known as refi) and are incentivised like real estate agents - the more transactions they do, the better their earnings. And just as real estate agents work for the seller (and are open about it), mortgage brokers are paid by the bank (but pretend they for for the borrower - "because we assist them to find the product that is in their best interests and best suits their specific individual needs.") It is an opaque relationship and floating rate borrowers especially should be wary.
Also note that mortgage brokers are incensed that the Commerce Commission has suggested that they offer clients three choices. The brokers lobby has suggested one 'choice' is all that is required.
Serviceability test rates cut
To be updated when details are ascertained.
Along with falling mortgage rates, banks are also cutting savings account rates.
Savings account changes
| max potential rate | Account | was | cut | Now |
| % | bps | % | ||
| ANZ | Serious Saver | 3.25 | -50 | 2.75 |
| ASB | Savings Plus | 3.65 | -50 | 3.15 |
| BNZ | Rapid Save | 3.75 | ||
| Kiwibank | Online call | 3.25 | ||
| Westpac | Bonus Saver | 3.25 | -50 | 2.75 |
| Cooperative Bank | Step Saver | 3.75 | -40 | 3.35 |
| Heartland Bank | Digital Saver | 4.00 | ||
| Rabobank | Premium Saver | 4.00 | ||
| SBS Bank | Incentive Saver | 1.95 | -25 | 1.70 |
| TSB | WebSaver | 2.95 |
Notice saver account changes
| Account | was | cut | Now | |
| % | bps | % | ||
| Kiwibank | 32 days notice | 3.55 | -50 | 3.05 |
| 90 days notice | 4.10 | -50 | 3.60 | |
| Westpac | 32 days notice | 3.75 | -40 | 3.35 |
| Heartland Bank | 32 days notice | 4.25 | ||
| 90 days notice | 4.50 | |||
| Rabobank | 60 days notice | 4.15 |
Fixed mortgage rates
Select chart tabs
Daily swap rates
Select chart tabs
Comprehensive Mortgage Calculator
56 Comments
Me oh My - thats quick
Water cooler bro was joking that the queue outside the bank was 400 meters long. Risk on. Forget the meme coins. Here's something tangible and real.
Sure they were ...
Don't you have anything else worth doing at 4:00pm?
ANZ - 4.99% for 2 yrs on the app! Just updated now.
I thought they would have already factored it in considering they were what picking it
Key word: Floating Rates
Any justifiable reason why floating rates shouldn't immediately, you know, float down?
What I am saying is that floating rates are largely irrelevant in terms of easing financial pressure on people with mortgages.
Oh, apologies, so I guess the table in the article is for floating rates, I assumed wrong. Although the table still doesn't have a heading that says it's for floating
Yes, the table is for floating rates. Fixed rates are lower than these.
Good reading skills!
What percentage of mortgages are floating now?
*And as at the end of December, 12% of all housing loans were on floating rates"
So the immediate impact will be useful - but its possibly not going to turn the nz economy around in the next few months.
Does Luxon have a plan to assist?
@Toye floating is now lower than what I am fixed on and i survived to 2025 - now we wait :) might float a bit in March and see what April delivers - thanks for pointing out floating. Can you imagine if immegration picks up again - might have to hide under the DGM blanket when the sun shines brighter - whatever you do dont buy a house falling knifes and keep renting is what I have always spruiked
Key Word: Saving Rates - watch them drop...
Great news especially for young families with home loans. The cost of living has been hard on them for some time.
This could take years to have any effect if they are in a fixed term.
https://www.interest.co.nz/economy/131797/50-point-cut-official-cash-ra…
the country's mortgage holders have been fixing for ever-shorter terms. That's resulted in about 55% (over $200 billion) of the total mortgage pile being either on floating rates or due to be re-fixed in the first six months of 2025.
Fantastic!
Just need more news such as lower house price and low migration to support further cuts👍
Any downward moves from here will be only minor, IMO.
Lol the offset portion of my loan is now at a lower rate than one of the fixed tranches
Can I have a cup of HFL with these drops please.
You've come to the right place...
You'll be wanting some sweetener with it, all the other HFL users are extra bitter.
Thanks David, for the advice re banks passing on rate reductions to existing clients immediately. Much appreciated.
The mortgage brokers comment deserves its own article. Their response needs a headline.
RadioNZ had a good interview on this (3 minutes), Mortgage advisers 'alarmed' at Commerce Commissions warning | RNZ
Banana Republic.
You really need to check your math...
ASB 7.99 down 50 pts to 6.89...?
BNZ 7.44 down 40 pts to 6.94...?
ANZ already had part of my mortgage floating at 6.89%. It would be good to see a further drop.
I'm contemplating moving away from ANZ. Anyone know the implications of having part of my mortgage remain with them for a few months, while the rest moves elsewhere?
I didn’t think you could take part of the mortgage anywhere. It’s all or nothing isn’t it? (I have no experience in this - just an assumption)
I imagine so. The bank would want full security over the property.
If you have one property you can only have one first mortgagee registered against the title to it. If another bank is willing to lend you some money against the same title they would have to agree to take a second mortgage behind the first mortgage which is risky therefore the second mortgagee requires a higher interest rate than the first mortgagee. The main risk associated with being a second mortgagee is that in a mortgagee sale the first mortgagee is not required to protect the second mortgagee. In such situations the second mortgagee often pays out the first mortgagee to keep control of the sale.
Again, the good people at Co-Op.. the only bank not cutting savings rates the full amount.
Great news, I fixed my mortgage in August coming off 2.89% to 6.85% for 6 months, it turned floating 4 days ago, I was paying 7.39% this morning, now 6.89% with the luxury of waiting for a few days to see if fixed rates will move down or not, before refinancing. $1,000s saved :-)
You could have fixed 4 days ago and saved the interest cost from then until now.
But then I couldn't have repaid $40'000 today ;-)
“House prices WILL double every ten years” A.Orr
Holy cow, 3% difference between OCR and floating rates, wasn't that about 2% not long ago? Banks making bank... and operating like a cartel?
it's a "competitive industry" apparently
ANZ rates screen shot shared on the NZ Mortgage Rates Facebook group:
1y - 5.09%
18m - 4.99%
2y - 4.79%
3y - 5.09%
4&5y - 5.19%
Deep cuts!
Those are quite a bit lower than on my ANZ app. Staff rates?
The poster claims they are public rates.
There is another post started by someone asking if anyone else can confirm those rates so I will watch and see.
4.79% for two years seems way too low to be believed
Multiple people have now posted screenshots showing 4.79% and one person has shared 4.94%.
David displaying his complete ignorance of what a Mortgage Adviser does again. We are considerably more regulated than a bank employee (who is the bank employee work for again?). He says that refinancing is a bad thing and then says MA's should be presenting three offers to every client, which one is it then David? The ComCom recommendations are being challenged by both MA's and banks, it doesn't take much grey matter to realise that the impact of doing that would simply increase bank costs and turnaround times which would be detrimental to all. A MA will generally already know which bank has the better deal for a clients particular needs, and as per a previous interest.co article it is not always best to chase the lowest rates, that's a game for the uneducated aka people like David
Bit harsh on David there. Unnecessary. The ComCom recommendations are to improve transparency for the client.
Davids uninformed opinions on a industry that helps so many people in NZ is what is unnecessary. He wants you all to believe the banks have your best interests at heart lol
Enjoying your gravy train I see.
Who does the bank employee work for? Who does the MA work for! It's not the 'client'.
Doesn't take much grey matter to see feathering of one's own nest at the expense of the 'client' is incentivized
I would love to know how you think its at a clients expense, I save my clients hundreds of thousands a year through better knowledge and strategies...and it doesn't cost the client a cent for my services, show me a bank that does that for every client
Good to see the conflict of interest situation of mortgage brokers (or mortgage "advisor" as they call themselves) highlighted. Why can't banks just deal direct and hand that cost saving on to their customers? It seems like everything is a ticket clip these days but not a value add. And beware the mortgage "advisor" choosing to act outside of their remit and advising on matters real estate. I've seen some humdingers on the FHB facebook page.....
There is minimal difference in net return for the banks on a loan written by a bank employee and an adviser. The answer to "why don't they" is the banks love outsourcing work and risk while still making profits. The key difference is that a good adviser will save their clients tens of thousands of dollars by managing their lending better. How on earth is that a bad thing
Westpac today were fantastic to deal with at the Tauranga branch, I highly recommend this bank they have always been good to me.
Leonie Coffman from Tauranga branch was extreamly good at her job and the process was quick and easy.
I wasn't able to get 4.79% but could get 4.99% but got a little cash back instead, i borrowed a extra $25,000 it was approved fast at the appointment.
I have a loan at 2.99% that has one year left to run, and 1 loan at 4.99% roll over and one new loan at 4.99% 3 years, (same house mortgage but split loans) with a little cash back as of today, after a appointment with the bank.
Very happy with the outcome and looking forward to replacing my 24 year old carpet.
sorry double post
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.