Comparing apples with apples.
Below you’ll see a summary of the home loan interest rates and terms currently offered by many of New Zealand’s top lenders. The offers have been grouped into lender types which you can sort by term or rate. For a quick glance at today’s best rates, view the top 6 rates here.
What to consider when comparing mortgage rates.
It’s easier to navigate the New Zealand home loan landscape when you have a financial adviser helping you along. Through us you can get connected to a qualified mortgage adviser. Here’s why it’s a good idea:
To get access to special offers and lower-than-advertised rates, we recommend you consult a financial adviser with a strong track record of success. Try our new ‘find a broker’ service which is free of charge, with no obligation.
Find a broker| Lender | Floating | 6 Months | 1 Year | 2 Years | 3 Years | 4 Years | 5 Years |
|---|---|---|---|---|---|---|---|
 | 6.29% | 4.79% | 4.99% | 5.49% | 5.59% | 6.39% | 6.49% |
 | 6.04% | 4.79% | 4.99% | 5.45% | 5.45% | 5.49% | 5.59% |
 | 6.60% | ||||||
 | 6.09% | 4.79% | 4.99% | 5.45% | 5.45% | 5.45% | 5.49% |
 | 5.34% | 4.79% | 4.99% | 5.45% | 5.69% | 5.89% | 5.99% |
 | 6.10% | 5.89% | |||||
 | 4.59% | ||||||
 | 6.00% | 4.75% | 4.95% | 5.39% | 5.49% | 5.59% | 5.69% |
 | 6.24% | 6.15% | 5.95% | 5.90% | |||
 | 6.54% | ||||||
 | 6.09% | 4.79% | 4.99% | 5.44% | 5.44% | 5.49% | 5.49% |
 | 6.04% | 4.79% | 4.99% | 5.49% | 5.69% | 5.89% | 5.99% |
 | 6.14% | 4.75% | 4.99% | 5.45% | 5.39% | 5.39% | 5.49% |
The live mortgage rates supplied by interest.co.nz are designed to be updated on an hourly basis, however sometimes updates may not occur as intended. Therefore the displayed rates are for reference only and we recommend you always check with a mortgage adviser or lender directly to confirm the latest rates on offer. The rates highlighted above are the ‘leading’ bank rate of the day, these rates may not be available to everyone. The highlighted rates may be ‘specials’, have ‘LVR requirements’ are for ‘owner occupiers’, or other ‘fine print’ to meet the eligibility criteria. Please check with the relevant lender directly to get information specific to your own circumstances.
need advice on the best available rate for you?
Get a financial adviser on your side.
It’s easier to navigate the New Zealand home loan landscape when you have a financial adviser helping you. Through us you can get connected to a qualified mortgage adviser.
Our financial advisers work with a wide range of lenders and often have access to lower-than-advertised rates. And if your situation is complicated, by something like overseas assets or a low deposit, you definitely want to be working with one of our mortgage advisers.
A quick guide to types of mortgage.
There are many types of mortgages, differentiated by interest rate, terms, fees and flexibility. Each one of these factors affects how much the loan costs and how long it will take to pay off.
General principal and interest (table mortgage)
A table mortgage is repaid by periodic repayments of principal and interest over the loan term, resulting in a declining principal balance and eventual repayment of the loan.
Interest-only mortgage
An interest-only mortgage is a loan that requires you to pay the interest charged on the loan, but not the amount you have borrowed. You only repay the loan in full when the term finishes.
Fixed rate mortgage
With a fixed home loan your interest rate stays the same for a specified term. At the end of the term, you can choose to fix again or move to a floating rate.
Floating rate mortgage
The interest rate on a floating or variable rate mortgage varies with the market. As a result, both the interest rate applied to your loan and the amount you are required to pay may also rise or fall.
Revolving credit mortgage
A revolving credit mortgage works a little like a large overdraft. You’re free to make repayments whenever you like, plus you can withdraw money up to your credit limit when you need to.
Offset mortgage
An offset mortgage is when you have one or multiple bank accounts linked to your mortgage. Instead of earning interest on those savings, you pay less interest on your mortgage.
Should you choose fixed or floating?
Fixed offers certainty, but less flexibility. Floating is super-flexible, but generally more expensive. What’s it to be for you?
Fixed interest rate loans.
When you choose a fixed rate home loan, the interest rate you pay stays the same for a given period (anything from six months to five years). At the end of the term, you can either fix again for a new term or switch to a floating rate. Fixed rates make budgeting easier and are nearly always lower than the floating rate.
Advantages:
Your repayments stay the same over the term, so there are no surprises. Lenders compete for the best fixed rate, so there are usually some great deals going. If economists are predicting a rise in interest rates, you can lock in a lower rate for a long term.
Disadvantages:
If you want to increase repayments or pay a lump sum off your loan, you’ll probably get hit with a fee. If you choose a longer term, there’s always the chance floating rates will dip to below the fixed rate you’re paying. You may have to pay a ‘break fee’ if you want to sell your property or move to a floating rate before the term is up.
Floating rate (or variable rate)
A floating rate is at the mercy of market forces. It goes up an down in response to the wider financial landscape, which is linked to the Official Cash Rate (OCR). As a consequence, your repayments may go up or down.
Advantages:
You can increase your repayments or pay off a lump sum at any time, without any penalty. To simplify your financial life and pay less interest, you may be able to consolidate other borrowing into your floating rate home loan.
Disadvantages:
Floating rates are nearly always higher than fixed rates. You’ll have less disposable income if repayments go up in response to an interest rate increase.
Visit the Learning Centre.
There’s a wealth of articles and guides in our Learning Centre, with expert content across a wide range of mortgage categories. Written by New Zealand’s most prominent property commentators and finance writers.
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