Best New Zealand Home Loans - 1, 2 & 5 Year Fixed Rates and Variable/Floating Rates

Looking for the best home loan interest rates? Our home loan comparison tables give you an instant overview of the top deals from trusted New Zealand lenders

Updated 25 November 2023

Compare Home Loans in Seconds

Every bank loudly promotes its mortgage offers, but does lower interest always mean the cheapest deal? Right now, we estimate there are over 200 home loan options available. The team at MoneyHub has handpicked what we consider the best mortgage deals available right now. Our list of home loan offers applies to first-time and existing homeowners looking to refinance or buy a new home.

We compare home loans from lenders all over New Zealand to help you find the best mortgage rates. We believe that the best mortgage offers will be the lowest priced, with low (or zero) fees and provided by a trusted lender.

Our guide covers:

Know this first: Buying a home is most likely going to be the most expensive financial decision you will ever make. Our helpful guides, calculators and resources are here for you to avoid ever paying more than you should.

When you're looking to buy a home, there are two important questions to ask yourself:

How much can I borrow?
How much is my mortgage going to cost every month?

Our loan affordability calculator and repayment mortgage calculator answer both of these questions in seconds. Also, if you are on an existing interest rate and want to switch to a better deal, our fixed or floating interest rate calculator helpfully tells you how much you could save every month, and how much sooner you could pay off your mortgage.

Video explainer
MoneyHub's Head of Research, Christopher Walsh, explains how to look for the best value home loan to reduce your overall costs of borrowing as well as highlighting must-know facts and considerations:

Best One-Year Fixed Home Loan Offers

Heartland Bank 1 Year Fixed

Rate: 6.99% p.a.
Minimum Equity: 20%
Fees: No establishment fee
Early Payment Charges: Yes
Want to learn more or apply? Visit Heartland Bank Home Loans

The Cooperative Bank 1 Year Fixed

Rate: 7.30% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $240
Early Payment Charges: Yes
Want to learn more or apply? Visit Cooperative Bank Home Loans or apply directly

Kiwibank 1 Year Fixed

Rate: 7.35% p.a.
Minimum Equity: 20%
Fees: None
Early Payment Charges: Yes
Want to learn more or apply? Visit Kiwibank Home Loans or apply directly

BNZ Classic 1 Year Fixed

Rate: 7.35% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $400
Early Payment Charges: Yes
Want to learn more or apply? Visit BNZ Home Loans or apply directly

Westpac 1 Year Fixed

Rate: 7.39% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $400
Early Payment Charges: Yes
Want to learn more or apply? Visit Westpac Home Loans or apply directly

ANZ 1 Year Fixed

Rate: 7.39% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $500
Early Payment Charges: Yes
Want to learn more or apply? Visit ANZ Home Loans or apply directly

TSB 1 Year Fixed

Rate: 7.39% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $250
Early Payment Charges: Yes
Want to learn more or apply? Visit TSB Home Loan Mortgages or apply directly

ASB 1 Year Fixed

Rate: 7.45% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $150
Early Payment Charges: Yes
Want to learn more or apply? Visit ASB Home Loan Mortgages or apply directly

First Credit Union 1 Year Fixed

Rate: 7.45% p.a.
Minimum Equity: 20%
Fees: Establishment fee - None
Early Payment Charges: None
Want to learn more or apply? Visit First Credit Union or apply directly

SBS Bank 1 Year Fixed

Rate: 7.55% p.a.
Minimum Equity: 20%
Fees: Loan Application Fee - $400
Early Payment Charges: Yes
Want to learn more or apply? Visit SBS Bank Home Loans or apply directly

Best Two-Year Fixed Home Loan Offers

Hearland Home Loans 2 Year Fixed

Rate: 6.85% p.a.
Minimum Equity: 20%
Fees: Establishment fee - None
Early Payment Charges: Yes
Want to learn more or apply? Visit Heartland Home Loans

BNZ Classic 2 Year Fixed

Rate: 7.05% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $400
Early Payment Charges: Yes
Want to learn more or apply? Visit BNZ Home Loans or apply directly

ASB 2 Year Fixed

Rate: 7.05% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $150
Early Payment Charges: Yes
Want to learn more or apply? Visit ASB Home Loan Mortgages or apply directly

Kiwibank 2 Year Fixed

Rate: 7.05% p.a.
Minimum Equity: 20%
Fees: None
Early Payment Charges: Yes
Want to learn more or apply? Visit Kiwibank Home Loans or apply directly

The Cooperative Bank 2 Year Fixed

Rate: 7.30% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $240
Early Payment Charges: Yes
Want to learn more or apply? Visit Cooperative Bank Home Loans or apply directly

Westpac 2 Year Fixed

Rate: 6.99% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $400
Early Payment Charges: Yes
Want to learn more or apply? Visit Westpac Home Loans or apply directly

ANZ 2 Year Fixed

Rate: 7.09% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $500
Early Payment Charges: Yes
Want to learn more or apply? Visit ANZ Home Loans or apply directly

TSB 2 Year Fixed

Rate: 7.09% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $250
Early Payment Charges: Yes
Want to learn more or apply? Visit TSB Home Loan Mortgages or apply directly

SBS Bank 2 Year Fixed

Rate: 7.15% p.a.
Minimum Equity: 20%
Fees: Loan Application Fee - $400
Early Payment Charges: Yes
Want to learn more or apply? Visit SBS Bank Home Loans or apply directly

First Credit Union 2 Year Fixed

Rate: 7.35% p.a.
Minimum Equity: 20%
Fees: Establishment fee - None
Early Payment Charges: None
Want to learn more or apply? Visit First Credit Union or apply directly

Disclaimer: Our team of experts have chosen those home loans they believe to be the best deals for two-year home loan terms. A selection of those, for which we have published links directly to the lenders, are shown above.

Best Five-Year Fixed Home Loan Offers

Westpac 5 Year Fixed

Rate: 6.49% p.a.
Minimum Equity: 20%
Early Payment Charges: Yes
Want to learn more or apply? Visit Westpac Home Loans or apply directly

TSB 5 Year Fixed

Rate: 6.69% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $250
Early Payment Charges: Yes
Want to learn more or apply? Visit TSB Home Loan Mortgages or apply directly

ASB 5 Year Fixed

Rate: 6.69% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $150
Early Payment Charges: Yes
Want to learn more or apply? Visit ASB Home Loan Mortgages or apply directly

BNZ 5 Year Fixed

Rate: 6.75% p.a.
Minimum Equity: 20%
Fees: Establishment fee - up to $400
Early Payment Charges: Yes
Want to learn more or apply? Visit BNZ Home Loans or apply directly

Kiwibank 5 Year Fixed

Rate: 6.79% p.a.
Minimum Equity: 20%
Early Payment Charges: Yes
Want to learn more or apply? Visit Kiwibank Home Loans or apply directly

SBS Bank 5 Year Fixed

Rate: 6.79% p.a.
Minimum Equity: 20%
Fees: Loan Application Fee - $400
Early Payment Charges: Yes
Want to learn more or apply? Visit SBS Bank Home Loans or apply directly

The Cooperative Bank 5 Year Fixed

Rate: 6.85% p.a.
Minimum Equity: 20%
Fees: Establishment fee - $240
Early Payment Charges: Yes
Want to learn more or apply? Visit Cooperative Bank Home Loans or apply directly

ANZ 5 Year Fixed

Rate: 7.34% p.a.
Minimum Equity: 20%
Early Payment Charges: Yes
Want to learn more or apply? Visit ANZ Home Loans or apply directly

Disclaimer: Our team of experts have chosen those home loans they believe to be the best deals for five-year home loan terms. A selection of those, for which we have published links directly to the lenders, are shown above.

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage. Written quotations are available from individual lenders, and loans are subject to valuations, credit checks, affordability assessment and residency confirmation. All interest rates are subject to change without notice. Please check all rates and terms with your lender, mortgage broker or financial adviser before undertaking any borrowing.

Best Floating/Variable Home Loans

The major banks all offer a similar interest rate - currently around 7.75% to 7.99% p.a. However, the lenders below challenge the status quo and provide cheaper floating mortgage rates:

Simplicity First Home Loan

Rate: 6.40% p.a.
Minimum Equity: 20%
Early Payment Charges: No
Want to learn more or apply? You'll need to be a Simplicity member. Visit Simplicity to learn more.

Heartland Home Loans Floating Rate

Rate: 7.99% p.a.
Minimum Equity: 20%
Fees: Establishment fee - None
Early Payment Charges: No
Want to learn more or apply? Visit Heartland Home Loans

First Credit Union Floating Rate

Rate: 8.50% p.a.
Minimum Equity: 20%
Fees: Establishment fee - None
Early Payment Charges: None
Want to learn more or apply? Visit First Credit Union or apply directly

Disclaimer: Our team of experts have chosen those home loans they believe to be the best deals for floating/variable home loan terms. A selection of those, for which we have published links directly to the lenders, are shown above.

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage. Written quotations are available from individual lenders, and loans are subject to valuations, credit checks, affordability assessment and residency confirmation. All interest rates are subject to change without notice. Please check all rates and terms with your lender, mortgage broker or financial adviser before undertaking any borrowing.

Ready to Apply for a Home Loan?

Consider a Mortgage Broker - They Usually Save Time and Money

Mortgage brokers are popular and don't charge a fee. Their service goes beyond what a bank offers by comparing a number of lenders to find the best deal for your circumstances.

We've shortlisted top-rated mortgage brokers who go the distance for their clients in select cities around New Zealand:

Home Loan Resources - Facts, Guides, Tools and Tips

Buying a home is a big step, and paying for it is not a decision you make every day. To help explain the important pieces, we've presented some popular tips and tools below.

What home loan features will help me save money?

A mortgage is most likely to be your largest financial commitment, and you’ll like have to make repayments for 10-25 years. Every dollar you can save makes a huge difference. And while the best deal will often be a home loan with the lowest interest rate, other features can go a long way to reduce the overall cost. We’ve outlined these below:

1. Free extra repayments: If you can make overpayments without being charged a fee, you can lower your balance quicker and save significantly on interest costs. If you feel as if you will be in a position to make extra repayments, then it’s a good idea to look for mortgage deals which offer it as standard. By applying spare cash to pay a little off your loan, you’re lowering your loan amount quicker, and therefore saving on interest costs. As an example, most variable interest rate home loans offer free extra repayments.

2. Offset mortgage account: Increasingly popular with more and more homeowners, an offset account is a great way to save on interest costs. It works by ‘offsetting’ money you have in your bank account against your mortgage balance. For example, if you have $5,000 in your bank account and a mortgage balance of $500,000, you’ll pay interest on $495,000 only. Essentially, every dollar in your bank account is offset against your mortgage amount, meaning you will pay less interest. Our offset mortgage guide has more details.

3. Split interest rate: If you’re unsure about what interest rates will do in the future and don’t want to commit yourself to a specific rate, you can have half of your loan tied to a fixed rate, and the other half tied to a variable rate. While this may be more expensive overall than a cheap fixed offer, you have the flexibility to overpay on the variable portion of the mortgage and avoid the overpaying for your mortgage.

4. Redraw facility option: If you’ve been paying more than your minimum repayments on your mortgage, a redraw facility means you have some extra money available on your loan that you could ‘redraw’, and use for whatever you like. The terms and fees vary per lender, but if you believe this could be something you would use, it’s worth considering.

Expert Tip – Variable mortgages come usually have a higher interest rate than fixed-rate terms, but generally offer greater flexibility and features and often have lower fees. Fixed-rate deals, by comparison, have stricter terms and conditions, and, generally, more fees.

What home loan fees will I need to budget for?

Beyond the interest rate cost, several fees are chargeable with any home loan. Some of these are paid upfront, whereas others can be added to your mortgage and paid off in the long-term. The fees include:

Establishment fee: This is an upfront fee that you pay to draw down the mortgage and usually ranges between $0 to around $400 or $500.
Service fee: This is relatively rare and usually associated with car finance or personal loans, but it can exist in mortgages. A service fee is a monthly charge that covers the cost of maintaining your mortgage.
Legal, valuation, builder reports and settlement fees: Before you make an offer, you may want to engage a building inspector and valuer to make sure the property doesn’t have inherent problems and so that you know what it’s worth. Legal costs, such as conveyancing, come once you’ve made an offer, as does settlement legal work. A budget of around $2,500 should take care of these costs if you’re buying a standard home.
Discharge fee: Some mortgages charge you a small fee once your mortgage is paid off in full.
Early Repayment fee: If you pay off your mortgage before the agreed ending date, you may pay a set fee to compensate the lender for lost interest revenue.
Feature fees: If you agree to specific features, such as extra repayments, redraw facilities or an offset account, you may pay an ongoing fee for these services.

Applying for a Home Loan? Read Our 8 Must-Know Facts

Understand 'mortgage rates' and how they affect what you'll pay for a home loan

'Mortgage rates' are the rates (i.e. percentage) of interest charged on a home loan. Mortgage rates are usually determined by the lender and can be either fixed (which means the interest rate will be the same for the term of the mortgage) or floating (meaning the interest rate will move when the New Zealand official cash rate changes).

Fixed-rate home loans

A fixed-rate home loan is, as the name would suggest, a mortgage that has an interest rate that doesn’t change for the life of the mortgage.
You agree to a term, that could be two years, five years or even ten years in some cases. Your repayments are the same every month, even if the lender increases or decreases its home loan interest rate offers.
With a fixed-rate home loan, you’ll be charged a penalty if you overpay your mortgage by most lenders, known as an 'early repayment charge'. For example, if you inherit $50,000 and want to repay your mortgage, your lender will charge a fee to do that.

Floating home loans

Floating home loans are mortgages that have an interest rate that can change at any moment, usually when the Reserve Bank of New Zealand (RBNZ) changes its interest rate but not always.
The RBNZ makes such changes based on inflation and the state of the economy. If the economy is not doing great, then the RBNZ is more likely to lower their interest rate to encourage investment with cheaper money. This means that a floating mortgage rate will also drop and the mortgage will be more affordable.
If the RBNZ needs to put up its interest rate, your mortgage will be more expensive. However, a lender can increase its floating mortgage rate at any time and not always in line with an RBNZ interest rate change your monthly mortgage costs will change, and you can’t do anything about that.
Most lenders don’t charge a fee for early repayment so you can make overpayments towards your mortgage without penalty.

Unsure whether to fix or float? You can do both

Some lenders offer a “mixing and matching” home loan. This means you can split your home loan between both options, taking advantage of certainty and exposing you to the risk of interest rate changes. This hybrid mortgage is best for people who want certainty but also think you’ll have a bit of extra cash in the future (e.g. a bonus or investment sale) and want to take advantage of using the extra money to make a lump sum repayment on the floating rate loan for no fee.

Lender fees are largely irrelevant - the lowest interest rate home loan will be, like for like, the best value

Most lenders charge you a fee for taking out a home loan, which can vary from $0 to $500 depending on the lender. Generally, owner-occupied mortgages have the lowest fees.

What matters is how much you will borrow – it’s better to pay a high fee to secure a low-interest rate on a big mortgage in many cases. With fees for owner-occupier mortgages generally consistent between lenders, the interest rate is the best measure of whether or not it’s a good deal. For example, a 3.99% interest rate mortgage with a $500 application or establishment fee is better than a 4.49% interest rate mortgage.

Decide on a repayment term based on what you can afford - the shorter, the less interest you'll pay overall

Most people opt for a 25-year term when they get their first mortgage, but that isn’t necessarily the right choice for you.
You can you for a shorter term or a longer term. If you go for a longer term, the monthly repayments will be lower, but you will pay more interest in total (as the loan is taken out for longer) and it will take you longer to pay off your mortgage. If you go for a shorter term, you’ll need to allow for higher monthly repayments, but you’ll pay less overall and be mortgage-free faster.
Our view is simple – go for the term that gives you a monthly repayment you can afford; this could be 10 years, 15 years or 30 years. However, an important thing to know is that your interest rate won’t be the same for the entire term even if you have a fixed rate, as we outline below.

Understand how a lender's fixed deal terms, which range from 6 months, 1 year, 18 months, 2 years, 3 years and up to 5 years, work in practice

When you apply for a home loan, you’ll need to decide how long you want the fixed term to be. Usually, the period is from 6 months to 5 years. Lenders won’t go for any longer than 5 years because it’s a significant risk – interest rates will change all the time, and the lender may lose money on a low-interest rate mortgage if interest rates rise.
After the fixed period ends, your mortgage interest rate reverts to a floating rate - you can either keep at the floating rate or find a new fixed term. You’ll need to remortgage, which we outline below.
Considering deal length doesn’t need to be complicated. For most Kiwis buying their first home or remortgaging, the longer the deal term is better. However, as most lenders will charge you for early repayment or overpaying your mortgage, it is essential to consider how long you want to be tied in for. If you don’t plan on moving or selling your home, it’s probably better to go for a longer deal.
If you plan to overpay your mortgage, it is probably best to go for a shorter deal so you can make a bulk payment at the end of the deal term without penalty.

Remortgage with confidence and flexibility when your fixed term interest rate expires

Remortgaging is usually an easy process. You’ll need to find an offer that suits your budget and agree to another mortgage term.
If you’ve taken out a 25-year term and are remortgaging after 3 years, remember to make sure your new mortgage is for 22 years and not 25 otherwise you’ll be paying less every month and paying off your home slower than you could be.
Best of all, you don’t have to stay with the same lender, although it may be more convenient there are deals to be had. Many banks offer excellent re-mortgage promotions which throw in free legal fees, application fees and more.

Understand 'interest-only' vs 'repayment mortgages'

Lenders give you a choice, but the options have very different purposes.
A repayment mortgage means your monthly payments are calculated so that what you pay includes some of the loan amount (principal) and the interest, meaning you are repaying the loan over the term.
An interest-only mortgage is just as its name suggests; your ongoing repayments will only be paying off the interest on the mortgage, and won’t repay any of the loan amount. As a result, your monthly repayments will be lower, but you’ll have to repay the entire mortgage amount at the end of the term (or refinance).
Interest-only mortgages are not that popular with first home buyers given they don’t make a dent in the mortgage outstanding, but they may work well if you have a small mortgage balance left and you plan to repay the loan at the end of the term from savings. They can also be an option if you are a property investor looking for capital gains if you believe house price will rise.

Deposits can be tricky to put together, but KiwiSaver can help

Our guides to the KiwiSaver First-Home Withdrawal and KiwiSaver HomeStart Grant schemes explain how KiwiSaver can be used to help you buy your first house.

Frequently Asked Questions

How do mortgages work?

A mortgage is a type of loan used to buy a house. A bank lends you a fixed amount of money for a certain period of time, which you repay every month. The amount of mortgage you need will depend on how much the house is and how much money you can put towards a deposit. For example, if you have a $100,000 deposit and the house you want is $500,000, you will apply for a $400,000 mortgage.

How much can I borrow?

Banks look at home loan ‘affordability’, which means the amount you can borrow will depend on your annual income, current savings as well as your existing ongoing financial commitments.

Our how much can I borrow? calculator helps you understand the size of a mortgage you may be eligible to borrow based on what you can afford to repay every month. You can also get an estimate of the ongoing mortgage costs using our mortgage calculator. Your credit history is also very important, as is your expected mortgage term.

Video explainer
MoneyHub's Head of Research, Christopher Walsh, explains how our home loan affordability calculator works in the video below, as well as highlighting must-know facts and considerations:

What are home loan interest rates?

Mortgage interest rates are the cost of borrowing your home loan. The lender, i.e. bank, determines the percentage you pay. Mortgage interest rates can be fixed (meaning they remain the same for the term of the loan) or floating (which means they move with the NZ Reserve Bank and general mortgage market conditions).

Our fixed or floating calculator and guide explains these two different type of mortgage interest rates.

How do I get a home loan?

To get a home loan, you will need to have enough money for a deposit which will partially pay for the home you are looking to purchase. This should be at least 15% of the property value, but most banks prefer a minimum of 20% to comply with Reserve Bank requirements.
Once you have the deposit together, you need to apply for a home loan with a lender. As part of the application process, you will need to show your earnings, expenditures, savings and how much you’d like to borrow. The lender will then assess your application.
Alternatively, you could go with a mortgage broker (see our guide) who would handle the application process on your behalf.

What happens to my home loan if I want to move?

Most home loans are portable. This means you are allowed to transfer the mortgage from your existing property to a new property should you move home. Fees are involved, as the lender will need to value the property, and there will be legal work done as well. If your new home costs more than your existing home, you may need to borrow more from the bank. Some banks may charge for the costs they incur to organise the mortgage transfer.

What does 'equity' and 'LVR' mean?

LVR means the Loan to Value ratio, which is the amount of your loan compared to the value of your property. LVR is always a percentage, and calculated by dividing the amount of the loan by the value of the property. For example, if the property is worth $500,000 and you have a deposit of $100,000, the LVR will be 80%. ($500,000-$100,000)÷$500,000 = 80%. The higher the LVR, the riskier the loan is to a lender, and generally, the higher the interest rate. Conversely, if you have a home loan with a 20% or 30% LVR mortgage, you are relatively safer and will generally be offered a lower interest rate.

What is an owner-occupier home loan?

An owner-occupier home loan is a loan for a property that the owner will live in. This means that you can’t use your property as a rental and live somewhere else. Owner-occupier mortgages tend to be the lowest risk to a lender and have the lowest interest rates compared to buy-to-let mortgages.

I’m still unsure, what should I do next?

1. A mortgage broker may be able to help; our guide explains everything you need to know about their services. Mortgage brokers don’t charge for their services directly and are only paid if you go ahead. Their experience is unrivalled, and they will happily answer your questions about all things concerning the process of owning a home.

2. If you want to know more about looking for a home, check out our first home buyer guide, which outlines useful step-by-step tips.

3. Or, if you’re trying to sort out your budget, our mortgage calculator can help. We’ve also published any other calculators, including:

4. If you’re refinancing, check out our mortgage refinance calculator and see how much you can save by switching to the best mortgage deal.

5. If you’re looking for an interest-only deal, there are more risks involved. Check out our interest-only mortgage calculator and guide.

And, if you’re ready to jump right in, our home loan comparison tables (above) are the perfect place to start your search.