More mortgage rate cuts by more banks shifts who has the lowest rates, as banks jockey for position in a very competitive marketplace because new loan growth is quite limited
Late Monday Westpac made its responding cuts to its fixed rate card.
Now BNZ has chimed in with its version. And Heartland Bank has also announced reductions.
All this means that BNZ has now joined Kiwibank with the lowest carded offer for a six month fixed term.
Kiwibank retains the lowest rate for a one year fixed term.
All main banks are on 5.19% for 18 months. But ICBC offers 4.99% for that term.
4.99% is now almost universal from main banks for a two year term, except Kiwibank.
ANZ and BNZ now have the lowest three year rate.
Westpac has the lowest four and five year rates.
All these lower rates are only possible because term deposit rates are being pushed lower to ‘pay’ for the home loan drops. Wholesale rates are just not shifting in this same way.
Overall however the key one year rate in the 5.19% to 5.29% range is back to levels we last saw in September 2022.
The reader-reported mortgage rates are 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.