BNZ has announced cuts to both its fixed and variable home loan rates across all terms, moving ahead of the Reserve Bank of New Zealand’s anticipated Official Cash Rate (OCR) cut scheduled for tomorrow.
“We know many of our customers are looking beyond the very short-term fixed rates as the interest rate environment evolves. By cutting our fixed rates across all terms, we’re giving customers more choice and the ability to lock in a competitive rate for a longer period,” BNZ General Manager for Home Lending James Leydon said.
“Lower interest rates should also help relieve some pressure on household budgets by making borrowing more affordable,” Leydon added.
Fixed home loan rates (Effective Tuesday 27 May 2025)
| Product | Previous Rate | New Rate |
| Standard 6 months | 5.49% p.a. | 5.35% p.a. |
| Standard 18 months | 4.95% p.a. | 4.89% p.a. |
| Standard 1 year | 4.99% p.a. | 4.95% p.a. |
| Standard 2 years | 4.99% p.a. | 4.95% p.a. |
| Standard 3 years | 5.29% p.a. | 5.09% p.a. |
| Standard 4 years | 5.69% p.a. | 5.39% p.a. |
| Standard 5 years | 5.79% p.a. | 5.59% p.a. |
Variable home loan rates (Effective Wednesday 4 June 2025)
| Product | Previous Rate | New Rate |
| Standard Variable | 6.69% p.a. | 6.44% p.a. |
| Total Money | 6.79% p.a. | 6.54% p.a. |
| Mortgage One | 6.79% p.a. | 6.54% p.a. |
| Rapid Repay | 6.79% p.a. | 6.54% p.a. |
Leydon noted that the effect of reduced interest rates is reflected in the rising activity within the housing market. BNZ has seen a 20% increase in the number of home loan applications in the six months leading up to April 2025 compared to the same period last year.
Leydon has also mentioned that customers who deal directly with BNZ are being provided with quick, personalised service, delivering decisions within 24 hours for eligible applications once all necessary information has been received and lending assessments are finalised.
“Our branches are now open five days a week – to be there when and where our customers need us,” Leydon said.
RBNZ is set to announce its OCR decision tomorrow, with most economists anticipating a 25 basis point reduction.