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RBNZ keeps the cash rate unchanged; but expects further cuts READ ON Dismiss
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Mortgages

Mortgage Rates Daily Commentary
Thursday 10 July 2025  Add your comment
Borrowers holding out for more cuts

While one bank economist thinks home loan rates won't go much lower, even if the RBNZ makes one or two more cuts, a significant number of borrowers are holding out for lower interest rates. [READ ON]

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More long-term home loan rates fall

A stand-off is developing between the Reserve Bank and the markets. The bank wants to keep rates up, however they continue to fall.

Tuesday, June 14th 2005, 2:55AM

The big news last week was the Reserve Bank’s decision to leave the Official Cash Rate unchanged at 6.75% and its comments that lower rates are unlikely in the foreseeable future.

Reserve Bank governor Alan Bollard made it clear last Thursday that lower mortgage rates are some way off. “There is no scope for an easing in policy in the foreseeable future,” he said.

The bank also reiterated the view expressed previously that “a further tightening would likely be required.

With comments like that one would expect no downward movement for rates of less two years or less – but that did happen.

After the announcement Kiwibank dropped its two-year rate 15 basis points to a market-leading 7.35% and the National Bank dropped its two-year rate to 7.65%.

However against the trend Sovereign and Loan Plan increased their six-month rates.

Perhaps the most interesting thing for home loan borrowers is that rates in the longer-term area (fixed rates of three years plus) are continuing to fall.

These falls have little to do with the Reserve Bank, instead they are the result of what’s happening overseas. The key factor here is that growth expectations for some of the major economies are falling and there is speculation that there may be rate cuts in the United Kingdom and Europe.

Two of the banks, ANZ and National, have been the key movers in this area last week and they were joined by the biggest non-bank lender, Sovereign, in lowering rates.

Yesterday they were joined by a number of non-bank lenders including Asteron, GEM Home Loans, General Finance, Global Home Loans, Pacific Home Loans, Public Trust and Wizard.

Three-year rates now fall in a range of between 7.50% and 8.25%, while the range for two-year rates is slightly larger going from 7.35% to 8.35%. Floating rates remain unchanged following the RBNZ’s announcement.

To compare home loan rates go to http://www.goodreturns.co.nz/section/200.html

« House prices just keep risingFew bite BNZ bait »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.44 - - -
AIA - Go Home Loans 6.54 4.89 4.95 5.09
ANZ 6.49 5.55 5.55 5.69
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 4.95 4.95 5.09
ASB Bank 6.44 4.89 4.95 5.09
ASB Better Homes Top Up - - - 1.00
Avanti Finance - Near Prime 6.90 - - -
Avanti Finance - Specialised 8.34 - - -
Basecorp Finance ▼7.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 5.99 5.69 5.69
BNZ - Mortgage One 6.54 - - -
BNZ - Rapid Repay 6.54 - - -
BNZ - Std 6.44 4.89 4.95 5.09
BNZ - TotalMoney 6.54 - - -
CFML 321 Loans 4.99 - - -
CFML Home Loans 6.70 - - -
CFML Prime Loans 7.20 - - -
CFML Standard Loans 7.99 - - -
China Construction Bank 6.44 4.85 4.95 4.95
China Construction Bank Special 6.44 5.85 5.95 5.95
Lender Flt 1yr 2yr 3yr
Co-operative Bank - First Home Special - 4.85 - -
Co-operative Bank - Owner Occ 5.95 4.95 4.99 5.25
Co-operative Bank - Standard 5.95 5.45 5.49 5.75
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.29 5.19 -
First Credit Union Standard 6.94 5.79 5.49 -
Heartland Bank - Online 5.99 5.89 - -
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 7.45 5.90 5.80 -
ICBC 6.50 4.85 4.95 5.05
Kainga Ora 6.44 4.89 4.95 5.09
Lender Flt 1yr 2yr 3yr
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 6.35 5.79 5.85 5.95
Kiwibank - Offset 6.35 - - -
Kiwibank Special - 4.89 4.95 5.15
Liberty 6.90 6.80 6.50 6.45
Nelson Building Society 6.94 4.99 4.93 -
Pepper Money Near Prime 6.85 - - -
Pepper Money Prime 6.29 - - -
Pepper Money Specialist 8.30 - - -
SBS Bank 6.49 ▼5.49 5.55 ▼5.69
SBS Bank Special - ▼4.89 4.95 ▼5.09
Lender Flt 1yr 2yr 3yr
SBS Construction lending for FHB 3.94 - - -
SBS FirstHome Combo - 4.29 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 8.64 - - -
TSB Bank 7.19 5.69 5.75 6.09
TSB Special 6.39 4.89 4.95 5.29
Unity First Home Buyer special - 4.29 - -
Unity Special 6.64 4.99 4.99 -
Unity Standard 6.64 5.79 5.79 -
Wairarapa Building Society 6.75 5.09 4.95 -
Westpac 6.59 5.49 5.55 5.59
Lender Flt 1yr 2yr 3yr
Westpac Choices Everyday 6.69 - - -
Westpac Offset 6.59 - - -
Westpac Special - 4.89 4.95 4.99
Median 6.56 4.99 4.99 5.15

Last updated: 10 July 2025 4:59pm

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