As of 25 April 2026, the lowest 1-year fixed mortgage rate in NZ is 4.49% (TSB). Floating rates start from 4.99% (Co-operative Bank). Compare current rates from ANZ, ASB, BNZ, Westpac, Kiwibank and challenger banks below.
Last updated: 25 April 2026. Rates shown are for owner-occupiers with at least 20% equity unless otherwise noted. Rates change frequently — see the live comparison for the latest figures.
Current mortgage rates in New Zealand — April 2026
New Zealand mortgage rates have fallen sharply since mid-2024, driven by the Reserve Bank's aggressive easing cycle that brought the Official Cash Rate (OCR) down from 5.50% to 2.25%. For borrowers shopping for a home loan right now, the headline numbers across the big five banks and key challengers look like this:
Fixed rates — big five banks (special/best rates, 20%+ equity)
| Term | ANZ | ASB | BNZ | Kiwibank | Westpac |
|---|---|---|---|---|---|
| 6 months | 4.49% | 4.49% | 4.49% | 4.49% | 4.49% |
| 1 year | 4.59% | 4.59% | 4.59% | 4.59% | 4.59% |
| 18 months | 4.89% | 4.85% | 4.79% | — | 4.85% |
| 2 years | 5.09% | 5.09% | 4.89% | 5.09% | 5.19% |
| 3 years | 5.39% | 5.39% | 5.29% | 5.45% | 5.29% |
| 4 years | 6.09% | 5.55% | 5.59% | 5.79% | 5.39% |
| 5 years | 6.19% | 5.69% | 5.79% | 5.89% | 5.59% |
Fixed rates — challenger banks (best rates, 20%+ equity)
| Term | Co-operative Bank | TSB |
|---|---|---|
| 6 months | 4.59% | 4.59% |
| 1 year | 4.59% | 4.49% |
| 18 months | 4.89% | 4.99% |
| 2 years | 5.15% | 5.09% |
| 3 years | 5.39% | 5.29% |
| 4 years | 5.75% | 5.55% |
| 5 years | 5.89% | 5.69% |
TSB stands out with a market-leading 4.49% one-year fixed rate — 10 basis points below the big five. For two- and three-year terms, BNZ leads at 4.89% and 5.29% respectively, while Westpac offers the lowest four- and five-year rates (5.39% and 5.59%).
Floating and revolving rates
| Bank | Standard floating | Revolving / offset |
|---|---|---|
| ANZ | 5.79% | 5.90% (Flexible Home Loan) |
| ASB | 5.79% | 5.89% (Orbit Revolving) |
| BNZ | 5.99% | 5.94% (TotalMoney offset) |
| Kiwibank | 5.75% | 5.75% (offset) / 5.80% (revolving) |
| Westpac | 5.89% | 5.89% (offset) / 5.99% (revolving) |
| Co-operative Bank | 4.99% | 4.99% (revolving) |
| TSB | 5.79% | 5.89% (revolving) |
The Co-operative Bank's 4.99% floating rate is by far the lowest in the market — more than 75 basis points cheaper than the major banks. Among the big five, Kiwibank offers the cheapest floating and offset rate at 5.75%.
Compare all rates side by side on RatePal →
What about low-deposit borrowers?
If you have less than 20% equity, expect to pay a low-equity premium (LEP) on top of these rates. The loading varies by bank and LVR tier:
- 80–85% LVR: typically +0.25% to +0.50%
- 85–90% LVR: typically +0.50% to +1.00%
- Above 90% LVR: +1.00% or more (limited availability under RBNZ speed limits)
For example, a one-year fixed rate of 4.59% at 80% LVR might become 5.19%–5.49% at 90% LVR depending on the lender. Use the RatePal comparison page with your property value and deposit to see your personalised LVR-adjusted rate from every bank.
Cashback offers
BNZ and Westpac are currently offering $5,000 cashback on eligible new home loans. Cashback deals can help offset switching costs, but check the clawback terms — most banks will require you to repay the cashback (fully or partially) if you refinance within 3–4 years.
How mortgage rates have changed in 2026
The story of 2026 so far is one of stabilisation after a dramatic descent. Here is how we got here:
The OCR cutting cycle (August 2024 – late 2025)
In August 2024, with inflation finally coming under control, the RBNZ began cutting the OCR from its cycle peak of 5.50%. Nine consecutive cuts followed over the next 15 months, bringing the rate down to 2.25% — a total reduction of 325 basis points. It was one of the most aggressive easing cycles in New Zealand's history, and it transformed the mortgage market.
Short-term fixed rates fell from above 7% in mid-2024 to the 4.49%–4.59% range we see today. Floating rates dropped from above 8.50% to the 5.75%–5.99% range. For a borrower with a $500,000 mortgage, that translates to savings of roughly $700–$800 per month on a 30-year term.
The pause (February 2026 – present)
Since February 2026, the RBNZ has held the OCR steady at 2.25%. The April 2026 decision confirmed the hold, citing geopolitical disruptions affecting oil and gas supplies, which are raising near-term inflation risks. Inflation remains at the upper end of the RBNZ's 1–3% target band.
The next OCR review is scheduled for 27 May 2026 (Monetary Policy Statement). Most bank economists expect another hold, with market pricing suggesting the first potential hike may not come until September 2026 at the earliest.
What this means for mortgage rates
With the cutting cycle paused, mortgage rates have largely stabilised. Short-term fixed rates are unlikely to fall much further unless the economic outlook deteriorates. Longer-term fixed rates (3–5 years) already price in the possibility of future OCR increases, which is why they carry a noticeable premium over one-year rates.
The key takeaway: if you have been waiting for rates to bottom out, we may already be there — or very close. Locking in a competitive short-term fixed rate now gives you certainty while the market digests the next phase of the cycle.
Fixed vs floating — which is right for you?
This is the most common question borrowers face, and the answer depends on your circumstances. Here is a quick decision framework:
Choose fixed if you want predictable repayments, believe rates have bottomed, or are not planning to sell or refinance in the near term. The sweet spot right now is the six-month to one-year fixed term, where you get the lowest rate and the flexibility to reassess when it rolls off.
Choose floating if you want to make large extra repayments (bonuses, inheritance, lump sums), plan to sell within the next 12 months, or want the freedom to switch lenders without break fees. Be aware that floating rates are currently 1.00%–1.50% higher than the best short-term fixed rates, so you are paying a premium for that flexibility.
Consider splitting your mortgage — for example, 70% fixed and 30% floating. This gives you rate certainty on the bulk of the loan while keeping a flexible tranche for extra repayments. Most NZ banks support split structures at no additional cost.
For a detailed breakdown of the pros, cons and strategies for each rate type, read our comprehensive guide: Fixed vs floating mortgage rates NZ.
How to get the best mortgage rate in NZ
The advertised rate is a starting point, not the final number. Here are practical steps to secure the best possible deal:
1. Strengthen your deposit
The single biggest factor in your rate is your LVR (loan-to-value ratio). Borrowers with 20% equity or more qualify for the best special rates. If you are at 85% or 90% LVR, even a small increase in your deposit can drop you into a cheaper tier and save thousands over the life of the loan.
2. Compare across all lenders
Do not assume your current bank has the best rate. As the tables above show, there are meaningful differences between lenders — especially at longer terms and for floating products. Use RatePal's comparison tables to see every product side by side, filtered by your LVR, rate type and preferred features.
3. Negotiate
Banks have discretion to offer rates below their advertised specials, particularly if you have strong equity, a clean credit history and are willing to move your entire banking relationship. Get quotes from two or three banks and use them as leverage. A mortgage broker can also help with this process.
4. Consider the total cost, not just the rate
A low headline rate might come with conditions — minimum loan amounts, annual fees, or cashback clawback terms. Look at the comparison rate (where available) which factors in standard fees, and consider features like offset accounts, revolving credit and extra repayment limits. Use the mortgage calculator to model actual repayments at different rates.
5. Time your re-fix
If you already have a mortgage and your fixed term is expiring soon, do not let it roll onto the floating rate by default. Start comparing rates 4–6 weeks before expiry so you have time to negotiate or switch lenders if needed. Most banks will let you lock in a rate ahead of your rollover date.
First home buyer considerations
If you are buying your first home, the rate environment in April 2026 is significantly more favourable than it was 18 months ago. Here are some specific things to keep in mind:
KiwiSaver and Kāinga Ora support
First home buyers can withdraw most of their KiwiSaver balance (after a minimum of three years' membership) to put towards a deposit. You may also be eligible for the Kāinga Ora First Home Grant — up to $10,000 for an existing home or $20,000 for a new build, depending on your income and the property location.
Low-equity premiums
Many first-time buyers enter the market with less than 20% deposit. This means paying a low-equity premium on top of the advertised rate — typically 0.50%–1.50% depending on your LVR tier. While this increases your repayments, the lower base rates in 2026 make high-LVR borrowing more manageable than it was during the 2023–2024 rate peak.
Choosing the right structure
First-time buyers often benefit from short-term fixed rates (six months to one year) because budgets are tight and rate certainty matters. As your equity grows through repayments and property value appreciation, you will qualify for better rates at your next re-fix. For a complete walkthrough, see our first home buyer guide NZ.
Model your repayments
Not sure what you can afford? Use the RatePal mortgage calculator to estimate weekly, fortnightly or monthly repayments at current rates — then try the mortgage optimizer to find the best split structure for your situation.
Frequently asked questions
What are the current mortgage rates in NZ?
As of 25 April 2026, the best one-year fixed rates across the major NZ banks sit at 4.49%–4.59% for borrowers with at least 20% equity. Six-month fixed rates start at 4.49%, while two-year rates range from 4.89% to 5.19%. Floating rates sit between 5.75% and 5.99% at the big five banks, with the Co-operative Bank offering the lowest floating rate in the market at 4.99%. These rates have fallen significantly since mid-2024 following nine OCR cuts. For the latest figures, check the live rate comparison on RatePal.
Will mortgage rates go down in NZ?
Most economists expect mortgage rates to remain stable through mid-2026. The RBNZ has held the OCR at 2.25% since February 2026, and the April review confirmed no change. Near-term inflation risks from geopolitical disruptions make further cuts unlikely. Some forecasters see a potential OCR hike as early as September 2026. Short-term fixed rates may have already reached their cyclical low, making now a reasonable time to lock in a rate.
Which NZ bank has the best mortgage rate?
It depends on the term. For one-year fixed, TSB leads at 4.49%. For two- and three-year terms, BNZ is cheapest at 4.89% and 5.29%. For longer terms (4–5 years), Westpac offers the best rates. For floating, the Co-operative Bank's 4.99% is far below the big-five average. Among the big five for floating, Kiwibank is cheapest at 5.75%. Use RatePal to compare all lenders by your deposit size and preferred term.
How much can I borrow for a mortgage in NZ?
Your borrowing capacity depends on your income, existing debts, living expenses, deposit size and the lender's criteria. Most NZ banks apply a debt-to-income (DTI) ratio limit — typically 6× your gross annual income for owner-occupiers. For example, a household earning $120,000 per year might borrow up to roughly $720,000, subject to a satisfactory credit assessment. Use the mortgage calculator to estimate repayments at different loan amounts and rates.
Should I fix my mortgage for one year or two years?
One-year fixed rates (4.49%–4.59%) are currently 30–60 basis points cheaper than two-year rates (4.89%–5.19%). Fixing for one year gives you a lower rate and the ability to reassess sooner — useful if you think rates will stay low or fall. Fixing for two years costs more but provides a longer window of certainty. If rates rise before your one-year term expires, you will re-fix at a higher rate. Many borrowers hedge this by splitting their loan across multiple terms.
Compare mortgage rates from every NZ bank
RatePal compares home loan rates from all major banks and non-bank lenders in one place — updated daily. Filter by rate type, term, LVR and features to find the best deal for your situation.