Borrowers set for relief with BNZ rate cuts
BNZ has announced reductions to its fixed home loan rates across several key terms, effective Aug. 13
The move comes as economists widely expect the Reserve Bank (RBNZ) to deliver a further 25bp official cash rate (OCR) cut next week, with only half of the expected mortgage rate relief so far passed through to households.
James Leydon (pictured, BNZ general manager home lending, said the bank is acting early to support customers.
“These rate reductions across key fixed terms mean customers can access more competitive borrowing costs immediately,” Leydon said.
“We know household budgets remain tight for many New Zealanders, and today’s changes will help reduce monthly mortgage payments for those refinancing. The new rates are available for new customers as well as existing customers who are in their rollover period or currently on variable rates.”
The new fixed home loan rates are as follows:
The rate changes come at a time when New Zealand’s economic recovery remains sluggish and inflation is still above target, but with “significant excess capacity” in the economy,
Westpac economists believe further monetary easing is needed to help stimulate growth and support households. As more borrowers refinance, the effective mortgage rate is expected to continue declining, providing additional relief.
For mortgage advisers, BNZ’s new rates—combined with the anticipated OCR cut—could mean more competitive options for clients looking to refinance or secure a new home loan in the months ahead.
BNZ lending criteria (including minimum equity requirements) and terms apply. Rates are subject to change. Up to $150 establishment fee and early repayment charges may apply.
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