Our largest home loan lender shores up its rate position as challengers, including some of its main rivals, shift to lower positions in a tightly competitive market. ASB responds with its own timid changes

ANZ, the nation's largest mortgage lender with more than 72% of all its lending in home loans, has moved to retain its market position by trimming its fixed rates.

This move comes after BNZ (with less than 57% of all its loans in mortgages) moved last week with fixed rate offers that undercut it.

ANZ now has the most competitive carded six month fixed rates among the majors at 5.29% 4.29%. But the market is moving away from short fixed rates now.

ANZ's changes to its 12, 18, 24, and 36 month fixed rates now match BNZ.

The newly popular two year fixed rate is now 4.95% from ANZ, matching the earlier moves by both Westpac and BNZ to that level.

So in the end, this is a matching shift by ANZ, not a market moving one.

Update: ASB has trimmed rates too but their changes are very me-too and do not push the boat out further.

Currently, the lowest carded rates for terms six, 12, and 18 months are from challenger banks Bank of China and ICBC. Five banks, now including ANZ, offer 4.95% for two years. Westpac has the hottest three year rate at 4.95%. And Bank of China has the lowest four and five year carded rates.

For six months fixed, there is 44 basis points between ASB's 5.59% and the 5.15% offered by both the Bank of China and ICBC.

For one year fixed, between ASB and Kiwibank's 4.99% and Bank of China and ICBC's 4.85% there is 14 bps difference.

For 18 months, it is the same 14 bps difference. For longer the differences vary.

What we are seeing is a slow but relentless tightening of margins in the mortgage market, on competitive pressures. Readers of our swap rate chart below will know that wholesale money costs are not falling.

Those competitive pressures come as the background economy struggles to achieve any expansion momentum.

And the housing market is hung over with excess inventories, especially as some mum-and-dad investors start quitting their 'investments' as capital gains evaporate, and healthy homes upgrade pressures come to a head on July 1.

Housing market sales activity may be rising, but it is because increasing numbers of owners are getting much more realistic about their price expectations.

If you are a borrower, still negotiate. How flexible any bank 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. Updated with the ASB rate change.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at June 4, 2025	%	%	%	%	%	%	%
ANZ	5.29 -0.14	4.95 -0.04	4.89 -0.10	4.95 -0.04	5.09 -0.20	5.99	5.99
reader reported rates
	5.45 -0.14	4.95 -0.04	4.89 -0.10	4.95 -0.04	5.15 -0.20	5.59	5.69
	5.35	4.95	4.89	4.95	5.09	5.39	5.59
reader reported rates
	5.49	4.99		4.99	5.35	5.59	5.79
reader reported rates
	5.49	4.95	4.95	4.95	4.95	5.39	5.39
Bank of China	5.15	4.85	4.85	4.95	5.05	5.35	5.35
China Construction Bank	5.49	4.99	4.99	4.99	5.29	5.99	5.99
Co-operative Bank (*=FHB only)	5.39	4.89*	5.09	4.99	5.39	5.59	5.69
Heartland Bank (no new business)		5.89
ICBC	5.15	4.85	4.85 -0.14	4.95 -0.04	5.05 -0.34	5.49 -0.14	5.39 -0.10
	5.55	4.99	4.99	4.99	5.35	5.69	5.69
	5.49	4.99	5.09	4.99	5.39	5.79	5.89