NZ Mortgage Rate Comparison: How to Find the Best Deal

New Zealand mortgage rate chart illustration with house and calculator

Thinking about buying a home in New Zealand? With mortgage rates constantly shifting, understanding how to compare and choose the right home loan can save you thousands over the life of your loan.

Why Mortgage Rate Comparison Matters

Even a 0.5% difference in interest rate can add up to tens of thousands of dollars over a 25- or 30-year loan. With house prices high and inflation still a concern in 2025, finding the most competitive mortgage is more important than ever.

Types of Mortgage Rates

Fixed Rate: Interest rate remains the same for a set period (1–5 years). Provides certainty.
Floating Rate: Changes with market conditions. May save money if rates drop.
Split Loan: Combination of fixed and floating, offering flexibility.

Current Mortgage Rates (2025)

As of April 2025, here are the approximate fixed 1-year mortgage rates from major lenders:

ANZ: 5.89% (1 year), 5.29% (special LVR)
ASB: 5.25%
BNZ: 5.29% (special LVR)
Westpac: 5.89% (1 year), 5.29% (special LVR)
TSB: 5.29% (special LVR)

*Rates may vary daily. Always confirm with the provider.

Upcoming OCR Review and Potential Rate Changes

On April 9, 2025, the Reserve Bank of New Zealand is expected to announce a reduction in the Official Cash Rate (OCR) by 0.25% to 0.50%. This change is expected to impact mortgage rates across the country, potentially lowering them further. Many banks have already begun adjusting their rates in anticipation of this move. For instance:

ANZ: Recently lowered rates by 0.10% to 6.49% for a 6-month fixed mortgage.
ASB: Reduced rates by 0.15%, with a 1-year fixed mortgage now at 5.25%.
BNZ: Adjusted their rate down to 5.29% for a special LVR 1-year fixed mortgage.

*Rates will continue to fluctuate as banks react to OCR changes.

How to Compare Effectively

Look beyond the headline rate: check for fees, early repayment penalties, and cashback offers.
Use online mortgage calculators to estimate your payments and total interest.
Talk to a mortgage broker – they can access multiple lenders and negotiate better rates.

Tips to Qualify for Better Rates

Improve your credit score before applying.
Save for a larger deposit (20% or more).
Show stable income and employment history.
Consider shorter-term fixed loans if rate drops are expected.

FAQ

Can I refinance my mortgage later?

Yes, refinancing is common in NZ. You can switch banks or renegotiate terms when your fixed rate period ends.

What’s the average mortgage term?

Most home loans in NZ have terms of 25 or 30 years, but shorter terms are available.

Final Thoughts

Choosing a mortgage is one of the biggest financial decisions you'll make. Comparing rates and understanding the terms can help you save big in the long run. Take your time, research thoroughly, and don’t hesitate to ask questions.

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📌 About the Author

Kiwi Money Matters is written and maintained by a New Zealand-based writer with hands-on experience in finance and accounting since 2015.

All posts are personally researched, written to ensure clarity and trustworthiness for everyday Kiwis.

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