BNZ Matches ANZ with Lower Fixed Mortgage Rates - Is Now Your Moment to Buy?
- Staircase Financial
- 1 day ago
- 2 min read
Updated: 1 day ago
On 12 August 2025, BNZ cut its one-year and 18-month fixed home loan rates by 10 basis points, bringing them down to 4.79% which is exactly in line with ANZ’s lowest offer.
For buyers, this is welcome news. Falling interest rates reduce borrowing costs, which means you may be able to afford more home for the same repayments.
With the Official Cash Rate (OCR) expected to drop again soon, the window of opportunity for more affordable homeownership is opening wider.
What’s Changed in Mortgage Rates?
BNZ’s latest rate adjustments:
One-Year Fixed: 4.79% (down from 4.89%)
18-Month Fixed: 4.79% (down from 4.89%)
Six-Month Fixed: 5.09% (down 20 bps - the biggest single cut)
Two-Year Fixed: 4.89% (down from 4.99%)
ANZ made similar moves recently, with its one-year “special rate” also at 4.79%.
This marks a significant narrowing in competition among the big four banks, particularly for short-term fixed rates.
Why Now? The OCR Context
The Reserve Bank of New Zealand has already cut the OCR from 5.50% to 3.25% since August 2024, a drop of 225 basis points. Another 0.25% cut is widely expected at the upcoming review.
Lower OCR levels reduce banks’ wholesale borrowing costs, enabling sharper home loan pricing. BNZ’s early move suggests they’re looking to capture market share before the cut is made official.
What This Means for Borrowers
Quick Refinance Wins
If you’re on an older fixed term locked in at 6-7% or higher, refinancing now could slash hundreds off your monthly repayments. For example, on a $500,000 mortgage, dropping from 7.29% to 4.79% could save over $1,000 per month in interest.
Timing Your Fixed Term Strategy
The big decision for many is whether to:
Fix short-term (6-12 months) to potentially capture further cuts.
Lock in a longer term (e.g., two years) for stability.
Final Takeaways & Buying Opportunity
Falling rates mean lower borrowing costs, making property purchases more affordable than in the last two years.
Short-term rates are still easing, but locking in a competitive fixed rate now can give you certainty while the market adjusts.
With the OCR trending down and banks competing hard, conditions are improving for first-home buyers and investors alike.
Thinking about getting into property investment?
With interest rates trending lower, now could be the ideal time to make your move. Lower repayments mean you can potentially borrow more, and competitive rates from multiple banks give you more options. Book a free chat with the team at Staircase to find out what your options are.
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