ANZ, ASB, BNZ, and Westpac increase variable rates as brokers brace for repricing
New Zealand's major banks have begun lifting variable and floating home loan rates after the Reserve Bank raised the official cash rate (OCR) by 25 basis points to 2.75% — its second consecutive increase, following a rise from 2.25% to 2.5% in July.
ANZ was first to move, confirming its floating home loan rate would rise from 6.04% to 6.29% and its flexible rate from 6.15% to 6.40%, with changes effective for new loans from 9 September and existing loans from 23 September, ANZ said in a statement.
ANZ NZ managing director for personal banking Grant Knuckey framed the move as broadly expected.
"The RBNZ's call to raise the OCR to 2.75% today is in line with what the market was expecting," Knuckey said.
He noted floating rates are the most directly exposed to OCR movements, while "fixed home loans are influenced more by wholesale rates and expectations of where the OCR is heading next" — a distinction that matters given roughly 92% of ANZ's home lending book sits on fixed rates, with around 85% of those fixed loans still priced below 5%.
ASB, BNZ, and Westpac follow with matching increases
ASB confirmed a matching 25-basis-point rise to its variable home loan rates, lifting housing variable to 6.29% and orbit variable to 6.39%, effective 9 September for new customers and 10 September for existing customers.
ASB executive general manager personal banking Adam Boyd acknowledged the pressure some borrowers will feel.
"Recent data shows most of our customers are managing well, with 45% of our home lending book ahead on repayments by a month or more. However, we recognise not everyone is in the same position," Boyd said, adding that ASB's teams are "ready to support customers who may need extra help."
BNZ also confirmed increases effective from 17 September, lifting its standard variable rate to 6.34% and its TotalMoney, Mortgage One, and Rapid Repay variable rates to 6.44%. BNZ's fixed rates, last updated in early August, remain unchanged for now, ranging from 4.79% for six months to 5.49% for five years.
Westpac followed a similar path, lifting its Choices Floating and Offset rate to 6.39% and Choices Everyday to 6.49%, effective 7 September for new customers and 10 September for existing customers — while leaving fixed rates untouched.
Sarah Hearn, Westpac NZ managing director of product, sustainability and marketing, said most home loan customers wouldn't feel the change immediately.
"Most of our home loan customers are on fixed rates and there are no changes for them today. We continue to offer highly competitive fixed rates, including the lowest among the five biggest banks on 3-to-5-year terms," Hearn said in media release.
She added that Westpac remained available to support borrowers feeling the pinch.
"However, we recognise some customers will be worried about rising rates,” Hearn said. “We're here to help borrowers and savers manage their money through an increasing OCR cycle and we encourage them to contact us if they need any help or advice."
Fixed-rate gap grows as brokers eye refinancing
With all major lenders moving in lockstep on floating rates, advisers should expect renewed client interest in fixed-term options, particularly among first-home buyers and property investors seeking repayment certainty.
ASB's Boyd struck a similar note to other lenders, pointing borrowers toward proactive planning.
"Reaching out early gives us the best opportunity to find a solution together," Boyd said.
That gap between variable rates now above 6.2% and shorter-term fixed rates near 5% suggests fixed-rate refinancing conversations are likely to dominate adviser discussions in the weeks ahead as clients weigh borrowing capacity against rising floating costs.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
