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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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Rates still on the rise

Mortgage rates are continuing to rise without any prompting from the Reserve Bank.

Thursday, February 28th 2008, 2:40PM

by Maria Scott

New Zealand's central bank will review the Official Cash Rate next week and is expected to keep the rate on hold at 8.25%. But rising prices in the wholesale markets are forcing banks and other lenders to increase rates. Even floating rates, which are generally influenced mainly by the OCR, have been going up so that the mainstream banks are now charging 10.69% or 10.70%.

ANZ and sister bank National Bank have today (28 February) raised fixed mortgage rates and, as this is the largest banking group in the country, it seems inevitable that competitors will follow. The largest banks had been undercutting some of their non-bank competitors on five-year rates recently, but ANZ National has raised fixed rates across all terms. Sources in the non-bank lending sector say that the banks had been subsidising the cost of longer-term money as a marketing ploy and that the higher rates being charged elsewhere are a true reflection of the cost of finance over these terms.

Economists say that the rising cost of finance in the wholesale markets reflects a hardening of views on the outlook for inflation, and thus interest rates, in world economies. Westpac economists still think there is a chance that New Zealand's OCR will rise again, but that an increase may be delayed until the end of this year.

It would be a brave borrower who took a floating rate loan now in the hope that there will be substantially cheaper fixed rate money available soon. Rates have stayed high for much longer than expected and there may be more pain to come. Two-year rates look to be the least risky commitment at present but borrowers with larger debts should continue to diversify their rates and terms, as many do already.

Borrowers should also be aware that lenders' advertised loan rates are only part of the story in this market; lenders may be willing to negotiate. Mortgage brokers say that the slowdown in lending prompted by the cooling in the housing market is encouraging lenders to compete aggressively for business.

« BNZ mortgage market shares steady in Dec quarterNo rate relief this week: Economists »

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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 - ▲6.29 ▲5.79 ▲5.79
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 5.04 5.09 5.25

Last updated: 10 July 2025 4:59pm

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