The big banks' advertised fixed mortgage rates for terms of two years or less have settled into a narrow band this week, after BNZ cut its short-term rates to match its rivals, interest.co.nz reported on Wednesday.
If your fixed term is coming up for renewal before Christmas, here is where advertised rates stood on 4 November 2026, and what to check before you sign.
Where the main banks are
According to interest.co.nz's rate table for loans below 80 percent loan-to-value ratio (LVR), the lowest advertised "special" rates among the main banks were:
- 6 months: mostly 4.79 percent. Kiwibank 4.85 percent, Westpac 4.89 percent.
- 1 year: mostly 4.99 percent. Kiwibank 5.15 percent, Westpac 5.19 percent.
- 18 months: mostly 5.29 percent. Westpac 5.19 percent.
- 2 years: mostly 5.35 percent. Kiwibank 5.39 percent, Westpac 5.29 percent.
Interest.co.nz said the gap between the lowest and highest main-bank rates for these popular terms is now between 0.03 and 0.20 percentage points.
Chinese-owned banks are advertising lower rates
The same table shows lower advertised rates from three Chinese-owned banks:
| Bank | 6 months | 1 year | 2 years |
|---|---|---|---|
| China Construction Bank | 4.35% | 4.49% | 4.79% |
| ICBC | 4.55% | 4.65% | 4.99% |
| Bank of China | 4.58% | 4.68% | 5.08% |
These are advertised rates. Lending criteria, fees and the size of deposit each bank wants can differ, so a lower headline rate does not always mean a cheaper loan overall. Interest.co.nz suggests comparing offers with fees, cashbacks and any break costs included.
Why rates have moved
The Reserve Bank held the Official Cash Rate on 28 October. Interest.co.nz described the hold as unexpected, and said wholesale swap rates fell back afterwards, which made it harder for BNZ to keep higher short-term rates than other banks.
The next OCR decision is on 9 December. Interest.co.nz reported financial markets were pricing about an 80 percent chance of a 0.25 percentage point increase then, and said Reserve Bank Governor Breman has indicated the next move is likely to be up. Nobody can know for sure where rates will go, which is why many borrowers split their loan across more than one term.
Before you refix
- Ask your bank, and ask again. Interest.co.nz advises borrowers to negotiate, including through a mortgage broker. How much a bank will move depends on your finances.
- Compare the total cost. Look at application fees, account fees and any cashback, not only the rate.
- Check break fees if you are thinking of switching early. Interest.co.nz says break fees are usually small when rates are rising.
- Think about timing. Shorter terms are cheaper right now, but if the OCR rises in December, rates could be higher when they roll over again.
For background, see our earlier stories on the Reserve Bank's October OCR decision and Westpac's 18-month rate cut.
Rates change often. Check each bank's own website for its current rate before making a decision. This article is general information, not financial advice.
Source: interest.co.nz, "BNZ falls into line" (4 November 2026).
