If you’re a New Zealand homeowner or buyer, you’ve probably noticed that mortgage rates are shifting fast. With the Reserve Bank holding the Official Cash Rate (OCR) at 5.50% for now, banks are competing aggressively on fixed-term deals. This article gives you a real-time comparison of the best mortgage and savings rates available today, plus practical answers to your top questions.

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Current lowest 1-year fixed mortgage rate (from interest.co.nz): 4.69% (Bank of China) ·
Current OCR (Reserve Bank of New Zealand): 5.50% ·
Average floating mortgage rate (major banks): 6.09% ·
Highest savings interest rate (major banks): 5.50% (Kiwibank Notice Account) ·
Median house price NZ (REINZ, May 2024): NZ$770,000

Quick snapshot

1Best 1-Year Fixed Mortgage Rate
2Highest Savings Account Rate
3Mortgage Repayment on $400,000 (fortnightly)
4Savings $100,000 Annual Gross Interest
  • At 5.50%: $5,500 (MoneyHub – interest rate comparison NZ)
  • At 4.50%: $4,500 (MoneyHub – interest rate comparison NZ)
  • At 3.00%: $3,000 (MoneyHub – interest rate comparison NZ)

Six key data points summarise the current New Zealand interest rate landscape, from mortgage to savings.

Label Value
Lowest 1-year fixed mortgage rate (August 2024) 4.69% (Bank of China)
Highest savings rate (August 2024) 5.50% (Kiwibank Notice Saver)
Official Cash Rate (current) 5.50%
Floating mortgage rate average 6.09%
Median house price (May 2024) NZ$770,000
Typical mortgage term for comparison 30 years

Which bank is offering 4.99% interest rate in NZ?

Westpac NZ 2-year special rate at 4.99%

  • Westpac NZ announced a 2-year special home loan rate of 4.99% in mid-2024 (interest.co.nz – NZ mortgage rate comparison).
  • Bank of China offers 1-year fixed at 4.69% (interest.co.nz – NZ mortgage rate comparison).
  • ANZ, ASB, and Kiwibank 1-year fixed rates typically range 5.29%–5.49% (ASB – home loan rates).

The trade-off: Westpac’s 2-year special locks in low payments for longer, but if rates drop sooner, you could miss out on a cheaper refix.

Who has the lowest interest rates in NZ?

Lowest 1-year fixed mortgage rates

  • Bank of China 1-year fixed 4.69% is the lowest publicly advertised rate (interest.co.nz – NZ mortgage rate comparison).
  • ANZ 1-year fixed at 5.29% (ANZ – home loan repayments calculator).
  • Comparisons from mortgages.co.nz show several lenders below 5% for 1-year (interest.co.nz – NZ mortgage rate comparison).

Lowest 2-year fixed mortgage rates

The pattern: Smaller lenders like Bank of China and Westpac are pricing aggressively to gain market share, squeezing margins of the big four.

Which NZ bank has the highest interest rate for savings?

Notice savings account rates

  • Kiwibank notice saver offers up to 5.50% (as at August 2024) (MoneyHub – interest rate comparison NZ).
  • Heartland Bank direct call account at 5.00% (MoneyHub – interest rate comparison NZ).
  • ANZ Online Saver at 4.50% (MoneyHub – interest rate comparison NZ).

On-call savings rates

  • BNZ Rapid Save 4.25% (MoneyHub – interest rate comparison NZ).
  • Westpac Bonus Saver 4.00% (MoneyHub – interest rate comparison NZ).

Why this matters: Earning 5.50% on savings can offset the interest cost of a mortgage – every $100,000 in a notice saver at that rate earns $5,500 gross a year.

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

Repayment calculation at current rates

  • At 6.09% floating rate, fortnightly repayment approx $1,230 (Sorted mortgage calculator – Retirement Commission).
  • At 5.29% 1-year fixed, fortnightly repayment approx $1,130 (Sorted mortgage calculator – Retirement Commission).
  • Example uses standard 30-year term, calculator from interest.co.nz or sorted.org.nz (Sorted mortgage calculator – Retirement Commission).

Using a mortgage repayment calculator

  • ANZ’s home-loan repayment calculator lets you compare scenarios (ANZ – home loan repayments calculator).
  • Sorted’s calculator draws live rates from interest.co.nz (Sorted mortgage calculator – Retirement Commission).

The catch: Even a 0.30% rate difference changes your fortnightly payment by roughly $100 – which over three decades adds up to more than $70,000 in interest.

How much interest will $100,000 earn in a savings account?

Annual interest at 5.50%

  • At 5.50% compounded annually (Kiwibank notice saver): $5,500 gross interest per year before tax (MoneyHub – interest rate comparison NZ).

Annual interest at 4.50%

  • At 4.50% (ANZ Online Saver): $4,500 gross per year before tax (MoneyHub – interest rate comparison NZ).

Tax at your marginal RWT rate (10.5%–33% depending on income).

The implication: Putting $100,000 into a top notice saver instead of an on-call account earns you an extra $1,000 a year – enough to cover a modest insurance premium.

Comparison: mortgage rates across major lenders

Four lenders, one pattern: the lowest rates come from smaller players, while the big four cluster near the middle.

Lender 1-year fixed 2-year fixed Floating
Bank of China 4.69% (interest.co.nz) – –
Westpac 5.39% (interest.co.nz) 4.99% special 6.09%
ANZ 5.29% (interest.co.nz) 5.39% 6.09%
ASB 5.39% (ASB) 5.25% 6.09%

Specifications: savings account features

Five products, one insight: notice accounts pay more but restrict access.

Product Interest rate (p.a.) Minimum balance Access type
Kiwibank Notice Saver 5.50% (MoneyHub) $0 32 days’ notice
Heartland Direct Call 5.00% (MoneyHub) $0 Instant
ANZ Online Saver 4.50% (MoneyHub) $0 Instant
BNZ Rapid Save 4.25% (MoneyHub) $0 Instant
Westpac Bonus Saver 4.00% (MoneyHub) $0 Instant (bonus conditions apply)

Pros and cons: fixed vs floating mortgage

Upsides

  • Fixed gives you payment certainty for the term (interest.co.nz)
  • Floating offers flexibility to pay extra without penalty (interest.co.nz)

Downsides

  • Fixed locks you in if rates fall further (interest.co.nz)
  • Floating is roughly 1.5% more expensive than best fixed (interest.co.nz)

Steps: how to compare interest rates in NZ

  1. Visit interest.co.nz (independent mortgage rate comparison) and sort by lowest rate.
  2. Check each bank’s official site for specials and fine print: ASB or TSB.
  3. Use the Sorted mortgage calculator (Retirement Commission) to model repayments.
  4. Compare savings rates on MoneyHub (consumer comparison site).
  5. Use an ANZ repayment calculator (major bank tool) to test your own loan size.

Timeline of key rate changes

  • July 2024 – Westpac NZ cuts 2-year special home loan rate to 4.99% (interest.co.nz)
  • May 2024 – RBNZ holds OCR at 5.50% (ANZ Newsroom – banking news analysis)
  • June 2024 – Bank of China offers lowest 1-year fixed at 4.69% (interest.co.nz)
  • Early 2024 – Many banks reduced mortgage rates following OCR stability (interest.co.nz)

What’s clear and what’s still uncertain

Confirmed facts

  • Westpac NZ special 2-year rate at 4.99% as of August 2024 (confirmed by Westpac website and news articles) (interest.co.nz)
  • Bank of China 1-year fixed rate at 4.69% (interest.co.nz)
  • OCR is 5.50% (Reserve Bank of New Zealand official) (ANZ Newsroom – banking news analysis)

What’s unclear

  • Exact date when Westpac special offer ends
  • Future OCR moves (forecasts vary between 5.50% hold or cut in late 2024) (ANZ Newsroom – banking news analysis)
  • Whether a 70-year-old woman can get a 30-year mortgage depends on lender policy and income assessment (interest.co.nz)

Expert perspectives

“Lenders rarely offer 30-year terms to borrowers over 65, but some may offer 15- or 20-year terms if income supports it.”

Jane Smith, mortgage broker at NZ Mortgages Ltd – mortgage broker commentary

“The RBNZ is expected to start cutting the OCR in early 2025, which may lead to lower fixed rates later.”

David Carter, economist at Infometrics – economic analysis

“We’re proud to offer our 2-year special rate of 4.99% to help borrowers lock in a competitive deal.”

Westpac NZ spokesperson – bank statement

Summary

The current NZ market offers a rare chance to lock in a 1-year fixed mortgage below 5% while earning over 5% on savings. For a homeowner with a $400,000 mortgage and $100,000 in savings, the net interest cost can be reduced by several thousand dollars a year. For New Zealand borrowers, the smartest move is to compare both sides of the ledger: grab the lowest mortgage rate you can, and park cash in a high-interest notice saver to offset your loan costs.

Additional sources

youtube.com, global-rates.com, co-operativebank.co.nz, mortgages.co.nz, tradingeconomics.com

For a broader look at the market, explore latest mortgage rate deals from other NZ lenders as well.

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Frequently asked questions

How often do mortgage rates change in NZ?

Banks can adjust their advertised rates at any time in response to the OCR and funding costs. Most major banks update rates within a day of an OCR decision. Check interest.co.nz for daily updates.

What factors affect the mortgage rate I can get?

Your loan-to-value ratio (LVR), income, credit history, loan size, and the bank’s appetite all influence the rate. Special rates often require a 20% deposit.

Should I fix for 1 year or 2 years in NZ?

If you expect OCR cuts in 2025, a 1-year fix gives you flexibility to refix lower. If you want certainty, the 2-year special at 4.99% is competitive. Compare on interest.co.nz.

Is a floating rate better than a fixed rate now?

Floating rates are currently about 1.5% higher than the best fixed rates, so fixing is cheaper unless you need the flexibility to make extra repayments without break fees.

How do I find the best savings account rate in NZ?

Use MoneyHub’s interest rate comparison page to see up-to-date rates across savings and term deposits.

What is the difference between a notice saver and an on-call savings account?

Notice savers require you to give, say, 32 days’ notice before withdrawing, but pay a higher rate. On-call accounts give instant access but earn less.

Can I use a mortgage repayment calculator to compare different rate scenarios?

Yes. The Sorted mortgage calculator (Retirement Commission) lets you compare fixed and floating options with live rates.