Keep up to date with the latest mortgage rates.

Are you on the best rate?

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. Alternatively, you can sort by term or rate.

What to consider when comparing mortgage rates.

When looking at mortgage options and special offers from different lenders, it’s important to remember that interest rate is just one of the things to consider.

Your mortgage should be tailored to your individual financial situation, your goals and the lifestyle you want to lead.

Different banks will have different rates, policies, terms, service and ways to structure your mortgage. Talk to your bank, mortgage advisor or financial consultant about getting the best mortgage and repayment plan for you and your money.

Mortgage rates supplied by interest.co.nz – Please remember, our tools are used to indicate potential amounts relevant to borrowing and repaying. The amounts suggested are approximations only and you should not rely on them. Please check all details with your lender. The rates highlighted above in our rates table 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.

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.

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.

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.
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.
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.
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.
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?

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.
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.

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