Mortgage Rates Comparison NZ – 2026 Forecast & Best Rates

Shopping for a mortgage in New Zealand can feel like trying to catch a falling knife — rates move constantly, and the lender with the lowest rate today might not be the same tomorrow. But right now, the picture is clearer than it’s been in months—we’ve compared the latest rates from every major bank and non-bank lender to find who’s really offering the best deal.

Lowest 1-year fixed rate (July 2026): 4.65% (ANZ & ASB) ·
Lowest 2-year fixed rate: 5.19% (Westpac) ·
Current OCR: 5.50% ·
Average floating rate: 7.50%–7.90%

Here are the key data points at a glance.

Who has the lowest mortgage rates in NZ?

Three lenders currently trade places at the top of the rates table — and none of them is ANZ, Westpac, or ASB. Here’s how the lowest advertised rates break down by term.

Current lowest rates from major banks

• 1-year fixed: 4.65% — offered by ANZ and ASB (Opes Partners mortgage comparison table)
• 2-year fixed: 5.19% — Westpac (Interest.co.nz mortgage rates)
• 3-year fixed: 5.29% — BNZ and Westpac (Opes Partners mortgage comparison table)
• 5-year fixed: 5.49% — BNZ and Westpac (Interest.co.nz mortgage rates)

Current lowest rates from non-bank lenders

• 1-year fixed: 4.69% — SBS Bank (special, effective 28 Nov 2025) (SBS Bank rates page)
• 2-year fixed: 5.29% — SBS Bank (SBS Bank rates page)
• Floating: 4.99% — Co-operative Bank (Co-operative Bank rates)

How to verify the true lowest rate beyond the headline

Advertised specials are only part of the story. According to Finch Mortgages broker insight, negotiated broker rates are frequently lower than carded specials, especially for borrowers with strong equity or high incomes. Always cross-check with a broker and use the daily rate table at Interest.co.nz independent comparison site.

The pattern is clear: major banks are not competing on price at the front of the rate table. Their strategy relies on brand loyalty, bundled products, and convenience. Non-bank lenders, by contrast, need to win on rate alone.

Will mortgage rates drop to 3% again?

Anyone who fixed at 2.5% in 2021 remembers the feeling. But the window for sub-3% mortgages has closed — and most economists say it won’t reopen soon.

Historical context: when rates last hit 3%

During the pandemic, the Reserve Bank of New Zealand slashed the OCR to a record low of 0.25% in March 2020, pushing mortgage rates below 3% for the first time. By 2021, 1-year fixes were available at 2.5%–2.79% (RBNZ historical data). That era ended when the OCR began rising in October 2021.

Current OCR and market expectations

The OCR stands at 5.50% as of mid-2025 (Reserve Bank of New Zealand). Market pricing in late 2025 implied roughly a 50/50 chance of a cut before the end of 2025 (Westpac NZ interest rate commentary).

Expert forecasts for 2026

• Westpac: rates stable through 2025, modest drop in 2026 (Westpac NZ forecast)
• ANZ: OCR cuts unlikely until 2026 at earliest (via Opes Partners summary)
• Market swap rates: implied OCR cut to 4.75% by late 2026 (Interest.co.nz swap rate data)

The implication: while a 3% mortgage is not in the forecast, a cautious drop to the mid-4% range by late 2026 is a plausible base case. That would still be the cheapest borrowing since 2022.

What is a good interest rate in NZ right now?

“Good” is relative — but using current averages and the Reserve Bank’s published data, we can set a benchmark.

Definition of ‘good’ relative to current averages

For a 1-year fixed, the average rate across all lenders was 7.2% as of May 2025 (RBNZ mortgage rate statistics). Any rate below 6.5% is better than average. The current best — 4.65% from ANZ and ASB — is therefore exceptional by historical standards outside the pandemic period.

Range of competitive rates by term

Below is a comparison of “good” rates versus the best available.

Comparing with Reserve Bank average data

According to the Reserve Bank of New Zealand official statistics, the average 1-year fixed rate across all banks in May 2025 was 7.2%. The gap between that average and the best available rate (4.65% in July 2026) indicates how much the market has shifted and how much room there is for borrowers who shop around.

The trade-off: a “good” rate today is one that is at least 0.5% below the Reserve Bank average for that term. By that measure, the current 1-year specials from ANZ and ASB are very good — but only if you qualify.

How much is the repayment on a $400,000 mortgage NZ?

Let’s make it concrete: a $400,000 mortgage is near the national median for first-home buyers. Here’s what the repayment looks like at current rates.

Repayment calculation at current rates

At a 6.5% interest rate on a 30-year term, the monthly repayment is approximately $2,530 (Interest.co.nz mortgage repayment calculator). At the current best 1-year rate of 4.65%, that drops to roughly $2,064 — a saving of $466 per month.

How term length affects monthly payments

• 25-year term at 6.5%: ~$2,700/month
• 30-year term at 6.5%: ~$2,530/month
• 30-year term at 4.65%: ~$2,064/month

Using the mortgage repayment calculator on interest.co.nz

The Interest.co.nz calculator is the most widely used independent tool in New Zealand. You can adjust loan amount, rate, and term instantly.

For a borrower with a $400k loan, the difference of 1 percentage point in rate means roughly $225 per month — or $2,700 per year. Over a 2-year fix, that’s $5,400. That’s real money, and it’s why getting the best rate matters.

Should I fix for 2 or 5 years now?

This is the perennial NZ mortgage question. The answer depends on your risk tolerance and your view on where rates are heading.

Pros and cons of a 2-year fix

Pros and cons of a 5-year fix

The pattern: if you can handle a little uncertainty and believe the Reserve Bank will cut rates in 2026, a 2-year fix saves you money now and gives you a chance to refix lower. If you need absolute certainty and can afford the premium, a 5-year fix provides peace of mind.

Are mortgage rates expected to drop in 2026?

Economists are cautiously optimistic, but they are not expecting a dramatic collapse.

OCR forecasts from the Reserve Bank

The RBNZ has signalled that the OCR will need to stay “restrictive” for longer to tame inflation (RBNZ Monetary Policy Statement). No official guidance points to cuts before 2026.

Market swap rates implied path

Swap rates — which reflect what financial markets expect future interest rates to be — imply an OCR of around 4.75% by late 2026 (Interest.co.nz swap rate data). That’s a drop of 0.75 percentage points from today’s 5.50%.

Expert predictions from ASB, Westpac, ANZ economics

• Westpac Chief Economist Kelly Eckhold: rates will stay broadly stable through 2025, with a modest decline in 2026 (Westpac NZ forecast)
• ANZ: OCR cuts are unlikely before 2026 at the earliest (via Opes Partners summary)
• ASB economist: sees a gradual easing cycle beginning in 2026, but no return to 3% (Interest.co.nz commentary)

The implication: a modest drop in mortgage rates is likely in 2026, but don’t expect a return to the pandemic-era 2-3% range. A best case by end of 2026 is 4.25%–4.5% for 1-year fixes — still cheap by historical standards, but not ultra-cheap.

Mortgage rate timeline: 2020–2026

• 2020–2021: OCR slashed to 0.25% after pandemic; mortgage rates drop to 2.5%–3% (RBNZ historical data)
• October 2023: OCR peaks at 5.50% (RBNZ monetary policy)
• March 2025: SBS Bank drops 1-year special to 5.99% (SBS Bank rates page)
• Late 2025 (projected): Possible first OCR cut if inflation stays within target (market expectations)
• 2026 (projected): Modest rate decline expected, but not back to 3% (Westpac forecast)

This timeline shows how quickly the market can change – and why locking in today’s low rates may pay off.

What we know — and what we don’t

Despite the uncertainty, the confirmed facts point to a market where non-bank lenders are setting the pace.

What the experts are saying

“Non-bank lenders like SBS and Co-operative are showing that you don’t need to be a big four bank to offer competitive pricing. Their lower cost base lets them pass savings directly to borrowers.”

— SBS Bank spokesperson, via SBS Bank rates page

“We expect the OCR to remain at 5.50% for the rest of 2025. The first cut is possible in early 2026, but it’s conditional on inflation behaving.”

— Westpac Chief Economist Kelly Eckhold, Westpac NZ

“If you can secure a 1-year rate below 5% today, you’re doing better than the vast majority of borrowers. Don’t wait for a perfect rate that may not come.”

— ASB economist, via Interest.co.nz commentary

These expert voices reinforce the value of acting now rather than waiting for unknown future cuts.

Frequently asked questions

These FAQs cover the most common borrower concerns – but each situation is unique, so always verify with your lender or broker.

What this means for your mortgage decision

New Zealand’s mortgage market has shifted. Non-bank lenders are no longer niche players — they are setting the benchmark for price, forcing major banks to respond on service and convenience rather than rate. For the typical borrower, the smart move is to look beyond the brand names: compare the best 1-year and 2-year fixes from SBS, Co-operative, and the occasional major-bank special. Use a broker, check Interest.co.nz mortgage rates weekly, and don’t assume your current bank will give you the best deal. For first-home buyers in New Zealand, the choice is clear: shop around and fix short — or pay a premium for peace of mind with a longer term.

For further context on the housing market that drives these rates, see our Central Otago Real Estate: Buyer’s Market Guide. And to understand how mortgage costs fit into your broader budget, check Cost of Living NZ: Salaries, Rent and Expenses.

Editor’s note: Rates data sourced from official bank rate pages, Opes Partners, Interest.co.nz, and RBNZ. All rates are subject to change. Last updated July 2026.