New Zealand Mortgage Rates

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.

The New Zealand central bank interest rate was reduced for the first time in four years in June 2015.

It has been reduced a further four times since then and the current rate in April 2016 is 2.25 percent.

These reductions were in response to deflation fears, falling commodity prices and an overvalued New Zealand dollar.

The Reserve Bank’s forecasts expects rates to remain stable until the middle of 2017.

Mortgage rates are typically higher than the central bank rate.

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 has introduced a requirement that banks can mostly offer mortgages only to people who already have a cash deposit available to cover 20% of the cost of buying a property.)

Here are current mortgage interest rates offered by some of the country’s main lenders.

Mortgage Interest Rates in New Zealand

Type of Mortgage ANZ ASB Kiwibank Westpac
Variable Rate 5.64% 5.55% 5.45% 5.75%
6 months fixed 4.99% 4.75%* 4.85% 5.15%
1 year fixed 4.25%* 4.25%* 4.29%* 4.79%
2 years fixed 4.35%* 4.19%* 3.99%* 4.19%*
3 years fixed 4.99% 4.65%* 4.75% 4.49%
5 years fixed 5.30% 5.15%* 4.99% 5.19%

* These rates are available only for home buyers who borrow 80% or less of the property’s value. Other conditions may also apply.

New Zealand Mortgage Rates Graph

New Zealand Mortgage Interest Rates