Kiwibank | ANZ | ASB | National Bank
Some of the highest interest rates in the developed world were offered and paid in New Zealand for a number of years.
As a consequence of the Christchurch earthquake, the central bank interest rate fell to 2.5 percent on March 10 2011 and remains there today.
Mortgage rates are higher than this and are not expected to fall significantly because, regardless of the central bank’s interest rate, New Zealand’s banks need to source much of the money they lend from overseas. One result of the credit crunch is that it has become harder for banks to secure overseas funding.
Most borrowers should find little difficulty securing a mortgage in New Zealand. (Note: To cool the country’s real estate markets, especially in Auckland and Christchurch, the Reserve Bank is proposing (July 2013) to introduce a requirement that banks can offer mortgages only to people who already have a cash deposit available to cover 20% of the cost of buying a property. This may be introduced as soon as August or September 2013.)
Here are current mortgage interest rates offered by some of the country’s main high street lenders.
Mortgage Interest Rates in New Zealand
|Type of Mortgage||ANZ||ASB||Kiwibank||Westpac
|6 months fixed||4.95%||5.35%||5.25%||5.40%|
|1 year fixed||5.19%||5.40%||5.25%||5.40%|
|2 years fixed||5.95%||5.95%||5.75%||5.95%|
|3 years fixed||6.50%||6.40%||5.99%||6.50%|
|5 years fixed||7.10%||6.99%||6.90%||7.10%|
New Zealand Mortgage Rates Graph