ANZ New Zealand is following Westpac NZ with higher fixed home loan rates, effective Thursday.
All ANZ fixed mortgage rates from six months to three years are rising, by between 10 basis points (bps) and 26 bps.
Although the 20 bps rise for a one year fixed rate lifts it to 4.99% to match Westpac, in fact ANZ's other rises are to levels higher than Westpac's July 28 increases.
This pushes ANZ's carded rates to the highest of any bank for every fixed term. Only that 4.99% one year rate matches another bank (Westpac), otherwise they have the distinction on their own, apart from the Co-operative Bank's three year 5.69% rate.
Driving the rise are wholesale money costs. Swap rates have stayed sticky at the higher levels they rose to in mid-July. Internationally, benchmark rates have kept these rates elevated.
Banks can fund their lending from wholesale sources. Or from customer deposits. They are agnostic about where that funding comes from, so long as they meet regulator requirements of core funding and mismatch ratios. So it should be no surprise that they have also raised some term deposit rates and these rises range from 10 bps to 30 bps. These are effective Wednesday.
The larger 30 bps rises are for 18 month and two year term deposit commitments, fixed periods that savers have never shown much enthusiasm for.
ANZ's higher term deposit rates only just match Westpac's existing offers and don't really improve on those.
Other local banks are sure to follow Westpac and ANZ because they face the same pressure, and will no doubt appreciate others have gone first.
To compare mortgage rate offers in a way that includes the application and account fees costs, (or break fee costs if you need to do that), and applying the impact of a cashback/legal fee reimbursement, or other incentives, you can use our home loan comparison calculator. You can find it here. Or, for convenience, we have added it to the bottom of this article.
Negotiate, (even with your mortgage broker). How flexible banks may be will depend on the strength of your financials.
One other useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is here.
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.
Here is the 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 August 6 2026 | % | % | % | % | % | % | % |
 |
4.79 +0.10 |
4.99 +0.20 |
5.45 +0.26 |
5.49 +0.20 |
5.59 +0.10 |
6.39 | 6.49 |
 |
4.69 | 4.75 | 5.09 | 5.25 | 5.29 | 5.49 | 5.59 |
 |
4.69 | 4.79 | 5.09 | 5.29 | 5.29 | 5.39 | 5.49 |
| Kiwibank | 4.65 | 4.75 | 5.19 | 5.39 | 5.59 | 5.69 | |
 |
4.69 | 4.99 | 5.35 | 5.45 | 5.35 | 5.39 | 5.49 |
| Bank of China | 4.38 | 4.58 | 4.68 | 4.88 | 5.18 | 5.48 | 5.68 |
| China Construction Bank | 4.35 | 4.49 | 4.49 | 4.64 | 4.90 | 5.10 | 5.20 |
| Co-operative Bank | 4.69 | 4.84 | 5.19 | 5.39 | 5.69 | 5.89 | 5.99 |
| ICBC | 4.39 | 4.49 | 4.75 | 4.99 | 5.25 | 5.45 | 5.65 |
 |
4.69 | 4.79 | 5.09 | 5.29 | 5.29 | 5.39 | 5.49 |
 |
4.69 | 4.79 | 5.19 | 5.25 | 5.59 | 5.89 | 5.99 |
Fixed mortgage rates
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Daily swap rates
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17 Comments
Whether you think higher interest rates are a good thing or not, surely you agree that economic growth is looking unlikely in the near future if rates keep increasing. It looks like yet another round of business closures and unemployment to come.
Agreed. The underlying growth isn't sufficient to offset more household cost increases.
It feels like the RBNZ are on a seesaw; one minute they are trying to revive the economy, the next they are trying to kill it.
I think we will see some (very delayed) negative GDP figures later in the year and they will go back to rates drop mode.
Not when all the downstream crude oil and gas derivitives/byproducts, go to the moon, in a delayed fashion.
Especially Fertilizer pricing up big......food inflation will be roiling us for years!
Higher rates are the future. Get used to it!
"roiling us for years" - won't it be a one off hit to inflation. No real reason to see that type of inflation compounding.
What proportion of the price of a Broccoli at the supermarket is fertiliser?
The real question is, would we have enough broccoli to supply every supermarket without fert. The answer of course being no due to much lower yields.
Not unless it’s stagflation. GDP could fall and the RBNZ will be in no position to drop interest rates as CPI will (most probably) still be >3% ie outside their mandated band.
It’s the opposite cycle of the 1980 - 2020 period where to stimulate the economy the RBNZ just needed to drop interest rates. Now, it’s quite possible going forward, that to ‘stimulate’ the economy (or should we say to ‘regulate’) we need higher interest rates in order to reduce inflation (as we are entering inflationary recessions, not deflationary recessions). As I’ve said before - take a look at the post WW2 global economy through to the 1980’s.
I agree that is a possibility, but unless oil starts increasing again I think CPI will start decreasing later in the year. And with the economy completely dead and CPI decreasing, the RBNZ will cut even if CPI is still out of band. Just a guess, no one can predict the future...
But the CPI isn’t decreasing is it! Nor was it before the oil shock…it was up for a year and trending outside the mandated band before the Iran/US conflict.
So even before the oil shock, the CPI and swaps were showing that we needed rate hikes.
It’s been 5 years now and people saying ‘everything will go back to normal soon with low CPI, falling interest rates, healthy GDP growth and rising house prices’. But that golden era is gone (in my opinion) and to be replaced by something more resembling the 1946 - early 1980’s period - hence why I keep pointing you to take a look at the long term economic history of that period (rising inflation, rising interest rates).
You say we can’t predict the future but keep predicting the future that resembles your own adult life experience (ie a view skewed by recency and confirmation bias of 1990s - 2020) instead of looking back through history as what the future might resemble based upon similar trends and economic events.
There is an old tattered National bill board up not far from where I live which simply says “We got inflation down”. It’s a sad state of affairs and I think they’ve even given up.
CPI did decrease down to the low 2% region, then the RBNZ went into economy saving mode and it increased.
Often it's not about what's happening now but what happened 12 months ago. For example if 12 months after the war started petrol prices are similar to today, that will be a massive reduction in price to the $3.50 a litre of 91 we were paying just after the war started, deflation.
High annual inflation can quickly turn to deflation once the old price drops out after 12 months
This is why the RBNZ are meant to look at the medium term and look through one off price rises.
By the way I am not saying "everything will go back to normal soon with low CPI, falling interest rates, healthy GDP growth and rising house prices". I am just concerned that the RBNZ will keep going up and down on this seesaw instead of providing stability. I think there is a real chance the RBNZ will get caught with their pants down again at the start of next year with CPI back in band as the old fuel prices drop out, economy completely dead, and the RBNZ foot still flat on the brake.
That's a distinct possibility, though I wouldn't bet on inflation being back down at 2% by early next year. The middle of next year perhaps.
If inflation at 3% and falling, unemployment at 6% and rising, they will cut big time.
Not with food leaping at 5 to 10% over coming years.
That is indeed a possible outcome. Hopefully the future brings with it a good chunk of the no income and behind on tax for years zombie businesses, including stung out prop-a-speculators being wound up.
I'm fed up with subsidising such "businesses" via my tax payments.
It seems every lever was pulled in order to save property debt over the last decade. Now that Stagflation has set in its time to take medicine in the form of normal (higher) interest rates and the associated great unwinding of speculation. This doesn't happen fast unless there is a collapse in trust within inter bank lending like the GFC. Without such an event this manifests as a slow drawn out decline as speculators hold on for grim death until finally the banks call "time".
Lets the grinding unwinding continue....
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