BNZ is making a number of changes to its mortgage rate chart, with some short-term flat rate cuts and longer-term flat rate increases.
The possibilities to fix the particularly low five-year fixed interest rate are fading.
The BNZ six-month fixed interest rate is now 2.99%. That’s 40 basis points lower than the previous rate, which was not particularly competitive. Now it matches the offerings of ASB and Westpac, and has a clear rate advantage over ANZ (3.99%) and Kiwibank (3.55%).
What’s interesting about these ‘new’ levels is that short-term interest rates are merging around the levels that ASB pulled back at the end of April. But ASB’s longer-term fixed rate now looks ‘low’ and is about to be raised.
The yield curve for mortgages is steepening.
The lowest fixed-term rate is still 1.85% from Heartland Bank. And the highest fixed-term rate is ANZ’s new five-year rate of 4.39%. That’s the widest/steepest since 2012.
And if you already have a fixed-term mortgage that cannot be extended at the moment, our break allowance calculator can help you assess your options.
Here’s the updated snapshot of the lowest advertised fixed-term mortgage rates currently offered by the major retail banks.