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.

As a consequence of the Christchurch earthquake, the central bank interest rate fell to 2.5 percent on March 10 2011 and remained there for three years.

Interest rate rises began on March 13 2014 rising by quarter of a percent, and rose by further quarter percents in the months of April, June and July to their current rate of 3.50 percent. The Reserve Bank cited strong economic growth as the main reason for the rate rises.

The Reserve Bank anticipates a gradual further increase in NZ interest rates.

Mortgage rates are higher than the central bank rate and are also expected to rise, possibly reaching about 8 percent for variable rate mortgages by 2016.

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 6.74% 6.75% 6.65% 6.75%
6 months fixed 5.80% 5.80% 5.89% 5.80%
1 year fixed 5.59% * 5.99% 5.69% 6.09%
2 years fixed 5.70% * 6.09% 5.55% * 6.39%
3 years fixed 5.99% * 6.39% 5.89%* 5.89% *
5 years fixed 6.59% 6.49% 5.89% * 5.99% *

* 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