© Copyright 2024 Tella (New Zealand) Limited. All Rights Reserved. Powered by Tella.
45 minute read
Rolling Off a Fixed Term? Major Banks Are Slashing Rates
ANZ, BNZ, Westpac, and Kiwibank are cutting fixed mortgage rates ahead of the July 8 OCR review. Compare the latest shifts to save on your renewal.
Nurain Nadzirah
30 June 2026
Are you one of the thousands of Kiwi homeowners with a fixed mortgage coming up for renewal?
A sudden clash of pricing strategies among the major retail banks has just handed you a massive win.
Instead of just clicking 'RENEW'" on your bank’s app, understanding these quick market shifts ahead of the upcoming OCR announcement on July 8, 2026 can save you thousands.
1. Fixed Mortgage Rates NZ: A Split Market Emerges
Following recent drops in wholesale money markets, the big banks are moving in entirely different directions.
Depending on whether you want a short-term lock-in or long-term safety, the best deal depends entirely on who you ask:
• ANZ Drops Shorter Rates
ANZ led the charge by cutting its popular 1-year rate down to 4.65%, while keeping its 2 and 3-year options steady at 5.29% and 5.49%.
• Westpac Cuts Long-Term Rates
Westpac aggressively slashed its 3, 4, and 5-year terms by up to 0.30%. This brings their long-term specials down to match the rest of the market (starting at a sharp 5.29% for a 3-year fix).
• BNZ Takes a Split Approach
Bucking the trend, BNZ actually increased its shorter 1-year rate slightly to 4.79%. However, they aggressively targeted long-term borrowers by slashing their 3-to-5-year rates, matching Westpac’s highly competitive 3-year rate at 5.29%.
• Kiwibank Reshuffles the Deck
Going their own way, Kiwibank bumped up its 1-year rate to 4.75% while aggressively cutting its 4 and 5-year terms by 0.30%. While they aren't the lowest on the market, it shows they are heavily favoring borrowers who want to lock in for the long haul.
| Bank | 1-Year Fixed | 3-Year Fixed | 4-Year Fixed | 5-Year Fixed |
|---|---|---|---|---|
| ANZ | 🔽4.65% | 5.49% | 6.39% | 6.49% |
| Westpac | 4.79% | 🔽 5.29% | 🔽 5.39% | 🔽 5.49% |
| BNZ | 🔺 4.79% | 🔽 5.29% | 🔽 5.39% | 🔽 5.49% |
| Kiwibank | 🔺 4.75% | 🔽 5.39% | 🔽 5.59% | 🔽 5.69% |
Want to see how the rest of the market stacks up? To keep up with current changes in NZ mortgage rates, use our rates comparison table. It tracks daily updates across all major and non-bank lenders so you can spot the best windows to lock in your next term.
2. Why Banks Are Cutting Rates
To understand why banks are suddenly cutting rates, we have to look at the primary driver of all interest rates: inflation.
• Market Cool-Down: Global oil and energy shocks from earlier this year have quickly faded. With fuel prices dropping back down, wholesale money market costs have tumbled.
• OCR Outlook: Thanks to this drop, economists expect the Reserve Bank to comfortably hold the OCR steady at 2.25% on July 8—putting any rate-hike threats firmly on ice for winter.
3. How to Structure Your Mortgage Refix This Winter
Because the banks are using different pricing strategies, a one-size-fits-all renewal strategy won't work:
• Want Shorter Flexibility?
If you think rates will fall further next year and want to keep your options open, ANZ and ASB lead the 1-year space at 4.65%.
• Want Long-Term Certainty?
If you want to lock in a budget safety net, the 3-year space is the cheapest it has been in months. Westpac and BNZ's recent cuts let you lock in 3 years at a sharp 5.29%.
• Want to Hedge Your Bets?
Split your loan. Putting 50% on a sharp 1-year rate and 50% on a slashed 3-year rate gives you a mix of immediate flexibility and long-term stability.
Ready to use this bank rate war to lower your repayments?
As mortgage advisers, we bypass the standard apps.
We negotiate directly with lenders daily and can actively push for unadvertised rate discounts, fee waivers, or cash incentives to ensure your bank puts its best foot forward.
Let’s tailor your refix strategy before your current rate rolls over.
This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
Category:Newsletters
Category:
Newsletters