If you’re hunting for the best home loan rates in New Zealand right now, you’re looking for certainty in a market that keeps shifting. As of early 2026, mortgage rates sit in a narrow window that feels too good to be true for some borrowers, yet banks are quietly warning that the good times may be numbered. This guide breaks down the lowest advertised rates by term and bank, what economists from ANZ, Westpac, and BNZ actually forecast for the rest of 2026, and which deals are genuinely worth chasing right now.

4 related posts

Lowest Fixed Rate: 4.49% ·
Long-term Fixed Rate High: 6.29% ·
Average Floating Rate: 5.5% ·
Top Banks Compared: ANZ, ASB, BNZ, Westpac, Kiwibank ·
Rate Comparison Sites: MoneyHub, Squirrel, Canstar

Quick snapshot

1Confirmed facts
2What’s unclear
  • Whether mortgage rates will drop back to the 3% level seen in the early 2020s remains highly uncertain (no credible forecast supports this)
  • The exact timing of the first OCR hike beyond September 2026 varies by bank economist
  • Regional rate variations across NZ cities are not consistently tracked in public data
3Timeline signal
4What’s next

The following table shows the current lowest advertised rate for each term length across major New Zealand lenders.

Term Lowest Rate Lowest Lender Source
6-month fixed 4.49% ANZ, BNZ Squirrel interest rate data
12-month fixed 4.59% SBS Squirrel interest rate data
18-month fixed 4.85% BNZ Squirrel interest rate data
2-year fixed 5.09% BNZ Squirrel interest rate data
3-year fixed 5.29% BNZ Squirrel interest rate data
4-year fixed 5.39% Westpac Squirrel interest rate data
Floating rate 4.99% Co-operative Bank Squirrel interest rate data
FHB special floating 3.99% SBS BusinessDesk mortgage rate tracker

What is the best mortgage rate in NZ right now?

As of May 2026, the lowest advertised fixed rates across major New Zealand banks sit just below 4.6% for short terms, with the most competitive deals concentrated in the 6-month to 1-year range. MoneyHub home loan comparison tracks over 200 home loan options and updates rates regularly — their latest review was published April 27, 2026. The data from Squirrel interest rate data, which aggregates rates from all major lenders, shows that ANZ and BNZ are currently tied for the lowest 6-month rate at 4.49%, with SBS offering the best 12-month deal at 4.59%. For borrowers willing to lock in longer terms, BNZ dominates the 18-month through 3-year brackets, with its 3-year rate at 5.29% — still below what economists expect by year-end.

The upshot

If you are refinancing or taking out a new loan now, the window for sub-5% long-term fixed rates is closing fast — the rates on offer today are likely better than what will be available by December 2026.

Fixed rates overview

Fixed rates in New Zealand work by locking in an interest rate for a set term, protecting borrowers from OCR movements but also preventing them from benefiting if rates fall. The landscape in early 2026 shows a clear pattern: short-term fixed rates are the cheapest across the board, with the 6-month rate at 4.49% representing the lowest entry point. Canstar best lender awards, which awards best lender honors based on rates, value, and service, recognized ASB for 2026 — partly because ASB’s special 1-year rate of 4.49% matches the lowest available. The premium for certainty increases with term length: 4-year fixed rates from Westpac at 5.39% and ANZ’s 5-year forecast of 5.9% by December 2026 show that committing longer costs more but shields borrowers from near-term increases.

Floating rates comparison

Floating or variable rates move with the Official Cash Rate set by the Reserve Bank of New Zealand, currently at 2.25% as of November 2025. The Co-operative Bank offers the lowest floating rate at 4.99%, making it attractive for borrowers who expect rate cuts — though most bank economists believe the OCR is at or near its cycle low. Squirrel interest rate data shows Kiwibank’s standard floating rate at 5.75%, significantly higher than the Co-operative’s offer, demonstrating that even among major banks there is substantial variation in floating pricing. For first home buyers, the standout deal is SBS’s special FHB floating rate of 3.99%, which undercuts most standard floating rates by a full percentage point.

Bottom line: Short-term fixed rates at 4.49-4.59% are the cheapest available right now, while floating rates starting at 4.99% suit borrowers betting on stability rather than further cuts.

Which bank gives the best home loan rate?

The answer depends on which term you are targeting, because no single bank wins across all periods. BNZ holds the lowest rates for the 18-month, 2-year, and 3-year terms, according to Squirrel interest rate data. SBS leads for the 12-month fixed term, while ANZ ties with BNZ for the 6-month rate. Westpac offers the best 4-year rate at 5.39%, and the Co-operative Bank has the lowest floating rate at 4.99%. Smaller and online-focused lenders like ICBC (1-year special at 4.25%) and Simplicity (FHB members at 4.20%) occasionally undercut the major banks, but their availability may be limited to certain customer segments. BusinessDesk mortgage rate tracker notes that many banks offer “special” rates that are 0.4-1% lower than their standard advertised rates, so always ask about discounts before accepting a quoted price.

Kiwibank rates

Kiwibank positions itself as a competitive alternative to the big four, with a standard floating rate of 5.75% and a special 6-month rate of 4.49% that matches the market low. For customers preferring a domestically-owned bank, Kiwibank offers the advantage of being fully New Zealand-owned, though its product range is narrower than ANZ or BNZ. The bank’s revolving credit facility carries a rate of 5.75%, which is the lowest in that category, making it worth exploring if you need flexibility alongside your mortgage.

SBS and TSB rates

SBS Bank, traditionally strong in the South Island, offers the best 12-month rate at 4.59% and an even more compelling first-home-buyer special floating rate of 3.99%. This FHB rate is the lowest available in New Zealand for that borrower segment and represents a genuine advantage for those eligible. TSB, while respected for its customer service, does not currently feature in the rate-comparison tables for the lowest rates in any term category, suggesting its pricing is competitive but not leading the market.

Major banks: ANZ, ASB, BNZ, Westpac

The four major banks — ANZ, ASB, BNZ, and Westpac — account for the majority of New Zealand mortgage lending, and their rate decisions influence the entire market. Canstar best lender awards awarded ASB its best mortgage lender award for 2026, citing a combination of competitive rates, product features, and service quality. ANZ and BNZ are currently tied for the lowest 6-month rate, while BNZ leads in mid-term fixed rates and Westpac has the best 4-year option. BusinessDesk mortgage rate tracker recommends confirming current rates directly with banks, as specials change frequently and may not appear in aggregation tables immediately.

Why this matters

The gap between a special rate and a standard rate can be 0.4-1% — on a $400,000 mortgage over 25 years, that difference translates to roughly $150-350 per month in repayments.

Bottom line: BNZ dominates mid-term fixed rates, SBS leads for 12-month deals, and ANZ ties for the shortest fixed rate — but always ask for the special rate, as it is not always displayed prominently.

Will mortgage rates drop to 3% again?

The era of sub-3% mortgage rates in New Zealand, which briefly appeared during the COVID-19 pandemic response in 2020-2021, is highly unlikely to return in the near-to-medium term. Canstar rate forecast analysis shows that BNZ and ANZ both forecast fixed rates remaining above 5% through 2026, with ANZ expecting the 1-year rate at 5.2% by December 2026. The OCR, currently at 2.25%, has limited room for further cuts given that inflation is expected to return to the RBNZ’s 2% target by mid-2026, removing the primary justification for additional monetary easing. Westpac chief economist Kelly Eckhold explicitly warned that mortgage rates could move to the 5.5-6% range, and ASB’s economists believe the OCR cutting cycle is finished, with future movements likely to be increases.

Historical context

Between 2020 and 2021, the RBNZ slashed the OCR to a record low of 0.25%, and competitive mortgage rates followed, with some borrowers securing 2-year fixed rates below 2.5%. That period was an anomaly driven by an unprecedented global pandemic response and is not a baseline to expect again under normal economic conditions. The inflation surge that followed, partly triggered by pandemic-era stimulus, forced central banks worldwide to raise rates aggressively, and New Zealand was no exception — the OCR peaked above 5% in 2023 before the current cutting cycle began.

Current expectations

Economists at Opes Partners, analyzing RBNZ data, project the OCR will average 2.38% by Q4 2026, slightly higher than its current 2.25%, suggesting a modest increase rather than a cut. Threefold economic analysis confirms the OCR track was updated on February 17, 2026, with inflation expected to normalize by mid-2026 — effectively removing the rationale for further rate reductions. The consensus among bank economists is that borrowers should plan for rates in the mid-4% to low-5% range for fixed terms through at least 2027, with potential for further increases if economic growth accelerates.

Bottom line: The 3% mortgage rate era is almost certainly over for the foreseeable future — lock in current rates while they are still below 5% if you want protection against the expected increases.

Are NZ mortgage rates expected to drop?

The near-term outlook for New Zealand mortgage rates is for increases rather than decreases. Canstar rate forecast analysis reports that BNZ’s economics team expects the OCR to stay on hold through 2026, with the first hike in early 2027 — but even with OCR unchanged, fixed rates are forecast to rise as the market prices in future increases. ANZ’s own forecasts, published via Opes Partners interest rate predictions, show the 1-year rate climbing to 5.2%, the 2-year to 5.3%, the 3-year to 5.5%, and the 5-year to 5.9% by December 2026. This means that a borrower fixing now at 4.49% for one year and rolling into the new rate could face a significant increase when their term expires.

2026 forecasts

The RBNZ’s OCR track, updated on February 17, 2026, projects the OCR will average 2.38% in the December 2026 quarter — slightly above its current level of 2.25%. This marginal increase reflects economists’ expectations that economic recovery may prompt the RBNZ to begin normalizing monetary policy. Opes Partners interest rate predictions, which tracks ANZ and RBNZ forecasts in detail, notes that bank economists predict the OCR could reach 2.5-2.75% by end 2026 — a range that would push most floating and short-term fixed rates above current levels.

Expert predictions

Westpac’s chief economist Kelly Eckhold, speaking to 1News rate forecast coverage, gave the most explicit warning about the direction of mortgage rates: “That likely means mortgage rates heading from the mid 4 percents to low 5 percents, to the 5.5% to 6% range.” ASB’s economics team took a similar position, telling Canstar rate forecast analysis that the OCR cutting cycle is finished and future movements will be increases. ANZ’s internal forecast, shared via Opes Partners interest rate predictions, expects fixed rates to approach 5% by end 2026 even if the OCR itself remains at 2.25% through the year.

What to watch

Westpac expects the first OCR hike in September 2026 — if that prediction materializes, expect banks to reprice fixed rates upward before that date.

Bottom line: Mortgage rates are expected to rise through 2026, with most forecasts targeting the 5-6% range for fixed rates by year-end — the window to lock in current sub-5% rates is closing within months.

How long should I fix my mortgage for? 2, 3, 5 or 10 years

Choosing a mortgage term is fundamentally a bet on where interest rates will be when your term expires — and in early 2026, the calculus favors shorter terms for borrowers who can absorb potential rate volatility. Canstar rate forecast analysis shows that BNZ expects fixed rates to stay below 5% for most of 2026, meaning that a 1-year or 18-month fix now could be rolled into a higher rate in 2027. ANZ’s own projections show the 1-year rate climbing to 5.2% by December 2026, the 2-year to 5.3%, and the 5-year to 5.9% — a steep gradient that rewards shorter commitments today but exposes borrowers to renewal risk.

Pros and cons of different terms

Upsides

  • Short terms (6-18 months): Lock in today’s lowest rates (4.49-4.85%), minimum exposure to predicted increases
  • Medium terms (2-3 years): Balance between rate certainty and flexibility; BNZ’s 3-year at 5.29% offers moderate protection
  • Long terms (5+ years): Full protection against rate increases, useful for budgeting certainty on large loans
  • First home buyers (FHB): SBS’s 3.99% special floating is the cheapest entry point available

Downsides

  • Short terms: Renewal risk when rates are expected to be higher; requires discipline to refinance
  • Medium terms: If rates rise faster than forecast, you are locked into higher costs for 2-3 years
  • Long terms: The 5.9% forecast for 5-year terms is significantly higher than today’s 4.49%; you pay a premium for certainty
  • FHB floating: Exposed to OCR increases from September 2026 onward

Should I fix for 3 or 5 years?

For most borrowers, fixing for 3 years at 5.29% (BNZ’s current lowest) rather than 5 years at the forecasted 5.9% makes financial sense if they believe rate increases will moderate after 2026. Canstar rate forecast analysis suggests BNZ expects OCR increases to begin in early 2027, which means a 3-year term starting now would expire around the time the market might have stabilized at higher rates — allowing a refinance into a potentially lower long-term rate. However, borrowers who value absolute certainty and cannot absorb any future increases should consider locking in a 5-year term despite the higher upfront cost, particularly if their income is fixed or they are risk-averse by temperament.

Bottom line: Short to medium terms (1-3 years) are the strategic choice in early 2026 given forecasts of rate increases — the cost savings from locking in at 4.49-5.29% now outweigh the certainty premium of a 5-year term at 5.9%.

Current rates at a glance: major NZ lenders compared

Eight lenders compete for different segments of the market, with pricing varying sharply by term length and borrower profile. Squirrel’s comparison data, sourced from bank websites and updated regularly, shows that BNZ leads for mid-to-long fixed terms, SBS dominates the 12-month category and first-home-buyer segment, and the Co-operative Bank offers the best floating rate. The following table organizes the current lowest rate by lender across the most common terms.

This comparison highlights which lender currently leads for each product category, helping borrowers identify where to focus their shopping effort.

Lender Best Rate Category Rate Term
ANZ Short-term fixed 4.49% 6 months
BNZ Mid-term fixed 4.85-5.29% 18 months to 3 years
SBS 12-month fixed, FHB floating 4.59% / 3.99% 12 months / floating
Westpac 4-year fixed 5.39% 4 years
Co-operative Bank Floating rate 4.99% Floating
Kiwibank Revolving credit 5.75% Revolving
ASB Special 1-year 4.49% 12 months
ICBC Special 1-year 4.25% 12 months

The implication: borrowers who prioritize the lowest rate for their specific term should start with the lender listed in this table, then confirm availability and eligibility before applying.

“That likely means mortgage rates heading from the mid 4 percents to low 5 percents, to the 5.5% to 6% range.”

— Kelly Eckhold, Westpac chief economist (1News rate forecast coverage)

“BNZ’s Chief Economist, Mike Jones, has estimated that national house prices could rise by around 4 percent in 2026.”

— Mike Jones, BNZ Chief Economist (Threefold economic analysis)

“Cotality’s Chief Economist, Kelvin Davidson, has also indicated a similar range of 4 to 5 percent.”

— Kelvin Davidson, Cotality Chief Economist (Threefold economic analysis)

The trade-off

For first-home buyers, the choice between locking in a special 3.99% floating rate with SBS and fixing at 4.59% for one year involves a genuine dilemma: the floating rate is cheaper now but exposes borrowers to September 2026 OCR increases, while fixing provides certainty at a marginally higher cost.

Related reading: Westpac Home Loan Rates · Westpac Home Loan Rates

Additional sources

goodreturns.co.nz, mortgages.co.nz, squirrel.co.nz, opespartners.co.nz

Standout deals like ANZ and BNZ’s 4.49% one-year fixed rates get close scrutiny in this ANZ and BNZ rates comparison, aiding NZ home loan decisions amid shifting forecasts.

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Frequently asked questions

What factors affect home loan rates in NZ?

Home loan rates in New Zealand are primarily driven by the Official Cash Rate (OCR) set by the Reserve Bank of New Zealand, which influences banks’ wholesale funding costs. Beyond the OCR, factors include the bank’s funding needs, competitive pressure, the loan-to-value ratio (LVR) of the borrower, whether the borrower is a first-home buyer, and whether they qualify for a “special” discounted rate rather than the standard advertised rate. Economic conditions, inflation expectations, and global interest rate trends also shape the longer-term fixed rates available.

How do I compare mortgage rates online?

The most reliable comparison tools are aggregator sites like Squirrel interest rate data, MoneyHub home loan comparison, and Canstar best lender awards, which update rates from all major lenders and sort by term, rate type, and borrower category. Always check whether the rate shown is a “special” rate (which requires asking the bank directly or meeting specific criteria) or a standard rate, as the difference can be 0.4-1%. Confirm the rate directly with the lender before committing, as specials can change without notice.

What is a floating mortgage rate?

A floating rate (also called a variable rate) moves with changes to the bank’s base rate, which is influenced by the RBNZ’s OCR. Borrowers with floating rates benefit when the OCR falls — as it has since late 2023 — but face increased costs when the OCR rises. The Co-operative Bank currently offers the lowest floating rate at 4.99%, according to Squirrel interest rate data, while Kiwibank’s standard floating rate is 5.75%. Floating rates offer flexibility — most allow unlimited extra repayments without penalty — but less predictability than fixed rates.

When should I refix my mortgage?

The best time to refix is typically 30-60 days before your current term expires, giving you time to compare rates and negotiate. In early 2026, with rates expected to rise through the year, borrowers currently on rates above 5% should consider whether shorter terms still available in the 4.49-4.85% range could be worth locking in now to beat future increases. ANZ’s forecast of a 1-year rate at 5.2% by December 2026, as tracked by Opes Partners interest rate predictions, suggests that any borrower not refinancing soon will likely face higher costs at their next renewal.

How does OCR impact rates?

The OCR is the interest rate the RBNZ charges to commercial banks for overnight loans, and it serves as the benchmark for most lending rates in New Zealand. When the OCR falls, banks typically reduce their lending rates (mortgages, personal loans) and deposit rates. The RBNZ lowered the OCR to 2.25% in November 2025, and its own forecasts (updated February 17, 2026) suggest only a modest rise to 2.38% by Q4 2026 — but this masks the market expectation that fixed rates will rise faster than the OCR itself, as banks price in future increases.

Related reading

  • MoneyHub home loan comparison — over 200 options, updated April 27, 2026
  • Squirrel live rate table — sortable by bank, term, and rate type
  • Canstar rate forecast analysis — BNZ, ANZ, and ASB economists compared
  • Opes Partners interest rate predictions — detailed ANZ and RBNZ forecasts through 2026