New round of retail interest rate cuts starts, and it is savers who will be paying for the reductions in home loan rates. All the influences on wholesale rates are negative

The mortgage market is on the move with the largest lender setting the pace. (Updated: The table below is updated with Kiwibank's rate change.)

ANZ has cut three fixed rates. It's now six month rate has dropped -40 bps to 5.49%, and that is the lowest rate from any lender for that term.

It has also cut its one year and 18 month fixed rates by +30 bps and -20 bps respectively, matching their existing two year rate, and setting this level up for its rivals.

These changes come just three business days after the RBNZ OCR rate cut, the -25 bps long-signaled, widely expected, and delivered on Wednesday, April 9.

But that isn't the main influence on home loan rates. The sharp jerk in the global economic prospects is.

Financial markets have reacted very badly to the US policy missteps and the world faces a stagflation recession at a time the US dollar and US Treasuries no longer hold safe-haven status. This is a huge change, a hundred-year event. Wholesale interest rate markets are still trying to come to terms with what it all means and the RBNZ's change isn't part of that re-assessment.

The immediate consequence is that wholesale rates - money market rates, bond rates and interest swap rates - are all falling, and quite sharply. Our swap rate chart at the bottom of this story shows the recent declines. In turn, that is a background driver for fixed home loan rate settings.

If loan demand is facing economic headwinds, then savers can't expect to be paid much. Yield expectations are getting reset very much lower, pushed down by risk premiums. Borrowers can't expect to get the same reductions due to the sharp rise in risk. In fact ANZ has cut every one of its term deposit offers, by -10 bps to -30 bps with the heaviest cuts coming for the short terms where most savers are.

ANZ may be the first to kick off this latest rate reduction cycle, but they won't be alone for long.

We will update this page as changes are announced over the next few days.

The reader-reported mortgage rates are showing less of an advantage now, but 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. This table is updated with a subsequent Kiwibank reduction.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at April 15, 2025	%	%	%	%	%	%	%
ANZ	5.49 -0.40	4.99 -0.30	4.99 -0.20	4.99	5.29	5.99	5.99
current reader-reported rates
	5.79	5.25	5.19	4.99	5.35	5.59	5.69
current reader-reported rates
	5.79	5.29	5.19	4.99	5.29	5.69	5.79
current reader-reported rates
	5.65 -0.16	4.99 -0.20		4.99	5.59	5.79	5.89
current reader-reported rates
	5.89	5.29	5.19	4.99	5.39	5.39	5.39
current reader-reported rates
Bank of China	5.65	4.99	4.99	4.99	5.15	5.35	5.35
China Construction Bank	5.89	5.29	5.19	4.99	5.29	5.99	5.99
Co-operative Bank (*=FHB only)	5.69	5.09*	5.29	5.19	5.49	5.79	5.89
Heartland Bank (no new business)		5.89
ICBC	5.89	5.05	5.19	4.99	5.39	5.49	5.49
	5.95	5.39	5.25	5.29	5.35	5.69	5.69
	5.89	5.19	5.49	4.99	5.39	5.79	5.89