BNZ has lowered its standard advertised one-year fixed home loan rate to 4.49% per annum, continuing its strategy of competing aggressively for new home loan customers as mortgage rates fall across the market.
Karna Luke, executive for customer products and services at BNZ, said the bank was seeing strong demand for shorter fixed terms. “We’re seeing strong customer demand for our 1-year fixed term as borrowers look for the right balance between securing a competitive rate and maintaining flexibility in an evolving rate environment,” he said.
Luke said the rate cut would deliver meaningful savings for customers. “This 26-basis point cut provides meaningful savings for both new and existing customers. For someone moving from our current average 1-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 said.
He added that the new rate marked a significant decline from earlier peaks. “At 4.49%, this is a nearly 40% drop from the February 2024 peak of 7.35% for the 1-year fixed term – providing real relief for households,” Luke said.
The reduced rate is available immediately for new customers, as well as for existing borrowers who are about to refix or are 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.
The move positions BNZ alongside other major banks that have recently lowered rates following the Reserve Bank’s decision to cut the Official Cash Rate, signalling continued competition in New Zealand’s mortgage market.