Advisers gain sharper tool as BNZ slashes rates
BNZ has lowered its standard advertised one-year fixed home loan rate to 4.49% p.a., a 26-basis point cut aimed at helping borrowers and competing strongly in the mortgage market.
Karna Luke (pictured), executive customer products and services, said the move reflects strong demand for short-term fixed lending.
“We’re seeing strong customer demand for our one-year fixed term as borrowers look for the right balance between securing a competitive rate and maintaining flexibility in an evolving rate environment,” Luke said.
Savings for borrowers
BNZ said the cut could deliver meaningful savings for households.
“This 26-basis point cut provides meaningful savings for both new and existing customers,” Luke said. “For someone moving from our current average one-year rate of 5.19% p.a. with a $500,000 mortgage over a 25-year term, this new rate could save over $2,400 across the 12-month fixed period.”
He added that the latest change reflects how far the market has shifted since the peak last year.
“At 4.49%, this is a nearly 40% drop from the February 2024 peak of 7.35% for the one-year fixed term – providing real relief for households,” Luke said.
Available now for new and existing clients
The new rate is available immediately for new customers, as well as existing customers refixing or currently on variable rates.
“We know household budgets remain tight for many New Zealanders, and these changes will help reduce mortgage payments, whether you’re buying your first home, moving from another bank, or refixing an existing BNZ home loan,” Luke said.
Adviser considerations
BNZ said standard lending criteria, including minimum equity requirements, and terms apply. Rates are subject to change, with up to a $150 establishment fee and early repayment charges potentially applying.
If RBNZ delivers larger-than-earlier-expected cuts, shorter terms (like one-year) may remain popular with clients seeking flexibility to reprice again sooner.
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