Rates adjusted after wholesale market shifts
Bank of New Zealand (BNZ) has reduced its four- and five-year fixed home loan rates, effective 26 Feb. 2026, following a similar move by Westpac last week.
The bank’s three-year standard fixed rate remains at 4.99%, unchanged from its previous setting. However, the four-year rate has been reduced to 5.19% from 5.55%, and the five-year rate to 5.29% from 5.69%, according to BNZ’s recent rate sheet. The previous rates were set on 3 Feb. 2026.
Rates for six-month, one-year, and 18-month fixed terms remain unchanged at 4.49%, 4.49%, and 4.64%, respectively. The two-year term also holds steady at 4.69%.
According to interest.co.nz, BNZ’s move follows a downward adjustment by Westpac and comes amid volatility in wholesale interest rate markets. Market movements have been influenced in part by stronger-than-expected inflation data from Australia, where the annual rate was recently reported at 3.8%.
Previous vs current fixed rates (standard home loans)
|
Term |
Previous rate (3 Feb. 2026) |
New rate (26 Feb. 2026) |
Change |
|
6 months |
4.49% |
4.49% |
— |
|
1 year |
4.49% |
4.49% |
— |
|
18 months |
4.64% |
4.64% |
— |
|
2 years |
4.69% |
4.69% |
— |
|
3 years |
4.99% |
4.99% |
— |
|
4 years |
5.55% |
5.19% |
▼ 0.36% |
|
5 years |
5.69% |
5.29% |
▼ –0.40% |
Sources: BNZ, 1News
Variable and personal lending rates
Variable rate products were last updated on 3 Dec. 2025 and remain unchanged. The following rates apply to both new and existing customers:
|
Product |
Rate |
|
Standard Variable Rate Loans |
5.84% |
|
TotalMoney Variable Rate Loans |
5.94% |
|
Mortgage One |
5.94% |
|
Rapid Repay |
5.94% |
|
Personal Overdraft |
13.70% |
|
Advanced Personal Loan variable |
12.90% |
Source: BNZ
Credit card rates unchanged
BNZ’s credit card purchase rates remain unchanged: BNZ Advantage Classic at 20.95%, BNZ Advantage Visa Platinum at 18.95%, and Lite Visa at 13.45%.
Cash advance rates are 22.95% for BNZ Advantage Classic and Lite Visa, and 18.95% for BNZ Advantage Visa Platinum.
Better Future Home Loan
BNZ’s Better Future Home Loan – formerly known as the Green Home Loan Top-Up – continues to offer a discounted rate of 1% p.a. fixed for three years. The name change was announced by BNZ on 3 Feb. 2026.
Top-ups are capped at $80,000 and are available to customers with at least 20% equity in the property used as security.
Refixing cycle continues
BNZ chief economist Mike Jones told RNZ in early February that 2025 was the “year of the refix,” with 81% of fixed-rate mortgage borrowers refixing – the highest proportion in 13 years.
He said about 68% of fixed-rate loans are due for renewal in 2026. Approximately $132 billion in borrowings – or 34% of total outstanding mortgage lending – is scheduled to roll off fixed terms in the six months ahead.
