It is not often that a challenger bank (other than Heartland Bank) has a market low home loan rate, but today (Tuesday) TSB has launched a 5.35% one year fixed rate offer.
This is -14 basis points (bps) lower than ASB for that term which was last week's leader. And it is -22 bps lower than the carded offer from mortgage heavyweight ANZ.
And this rate change comes the day before the Reserve Bank's Monetary Policy Statement and Official Cash Rate review, one that is widely expected to deliver a -50 bps OCR rate cut which will flow to all floating rates.
A carded rate of 5.35% is the lowest from any bank since May 2023, when Heartland Bank has a 6.14% rate offer in the market. And since March 2023 when TSB had a 5.29 offer. A main bank hasn't had a rate offer this low since Kiwibank's 4.95% in October 2022.
TSB has also cut its 6 month rate to the market-low of 5.89% matching ASB. It also trimmed its 18 month and two years rates.
The reader-reported mortgage rates are fluid but 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.
TSB has cut term deposit rates for terms of 90 days to 18 months at the same time.
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 February 17, 2025 | % | % | % | % | % | % | % |
| ANZ | 5.99 | 5.57 | 5.39 | 5.44 | 5.59 | 6.19 | 6.19 |
| current reader-reported rates | 5.85 | 5.49 | 5.09 | 5.29 | 5.59 | 5.59 | |
 |
5.89 | 5.49 | 5.19 | 5.29 | 5.59 | 5.79 | 5.79 |
| current reader-reported rates | |||||||
 |
5.99 | 5.55 | 5.39 | 5.29 | 5.59 | 5.69 | 5.79 |
| current reader-reported rates | 5.85 | 5.49 | 5.09 | 5.35 | 5.45 | 5.59 | |
 |
5.99 | 5.55 | 5.29 | 5.59 | 5.79 | 5.89 | |
| current reader-reported rates | |||||||
 |
5.99 | 5.54 | 5.34 | 5.29 | 4.99 | 5.49 | 5.59 |
| current reader-reported rates | |||||||
| Bank of China | 5.95 | 5.55 | 5.35 | 5.39 | 5.49 | 5.49 | 5.49 |
| China Construction Bank | 5.99 | 5.57 | 5.39 | 5.44 | 5.59 | 6.40 | 6.40 |
| Co-operative Bank (*=FHB only) | 5.99 | 5.49* | 5.49 | 5.49 | 5.69 | 5.79 | 5.79 |
| Heartland Bank | 5.49 | 5.39 | 5.39 | 5.45 | |||
| ICBC | 5.99 | 5.55 | 5.39 | 5.59 | 5.59 | 5.59 | 5.59 |
 |
6.09 | 5.69 | 5.49 | 5.49 | 5.59 | 5.79 | 5.79 |
 |
5.89 -0.10 |
5.35 -0.14 |
5.49 -0.10 |
5.29 -0.16 |
5.59 | 5.79 | 5.89 |
Fixed mortgage rates
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Daily swap rates
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