BNZ lifts most fixed rates but holds a sharp 18-month deal against rivals
BNZ has repriced its entire mortgage range effective 22 September, joining Westpac and TSB Bank in a wave of spring rate changes that has left most fixed terms higher but sharpened a handful of key rates to compete for the season's business.
A mixed picture across the fixed curve
BNZ's six-month fixed rate now sits at 4.89% and its one-year term at 5.19%, both effective from 22 September alongside the rest of the fixed range. Separately, variable rates lifted from 17 September, with the Standard Variable Rate now 6.34% and the TotalMoney Variable Rate, Mortgage One and Rapid Repay rates each at 6.44%.
The remaining fixed terms, also effective from 22 September, tell a more mixed story. BNZ held its 18-month rate steady at a competitive 5.29% and trimmed its two-year rate to 5.35%, while its three, four and five-year rates rose to 5.59%, 5.65%, and 5.75% respectively — bringing the longer terms into line with levels Westpac had already moved to, and leaving TSB's cut 12-month rate priced below all the main banks on that term.
As interest.co.nz reported, BNZ has "retained its very competitive 18-month carded rate" and cut its two-year rate, "although not by as much as Westpac did."
Why rates are moving: BNZ's own economists point to inflation
The rate rises aren't happening in isolation. In a research note, BNZ's own chief economist Mike Jones revised the bank's official cash rate forecast to expect two further 25-basis-point hikes, in October and December. Jones pointed to rising global oil prices, higher freight costs, and a weaker New Zealand dollar as the key inflation risks behind the shift. He noted that wholesale swap yields had already jumped 20 to 35 basis points in the preceding week, adding pressure on retail mortgage pricing more broadly — a dynamic consistent with the rate rises BNZ has now made.
Positioning for the spring selling season
A Low Equity Interest Rate Premium continues to apply to all new or existing lending over 80% LVR, and BNZ's Better Future Home Loan top-up remains available at 1% p.a. for three years, capped at $80,000, for borrowers with at least 20% equity.
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