Compare mortgage rates in New Zealand

A fixed rate locks your interest rate for a chosen period (typically 6 months to 5 years), so your repayments stay the same regardless of market movements. A floating (variable) rate moves up or down as your lender adjusts it, usually following OCR changes. Fixed rates offer budgeting certainty while floating rates give you full flexibility to make extra repayments without break fees. You can compare both rate types side by side using RatePal's filters.

LVR (Loan-to-Value Ratio) measures your loan amount as a percentage of the property's value — essentially the inverse of your deposit. If your LVR is above 80%, most banks add a low-equity premium of 0.25–1.00% on top of the advertised rate. The RBNZ also restricts how much high-LVR lending banks can do, meaning fewer approvals for low-deposit borrowers. Use our mortgage calculator to see how different deposit sizes change your effective rate.

The Official Cash Rate (OCR) is set by the Reserve Bank of New Zealand and directly influences floating mortgage rates, which tend to move soon after an OCR change. Fixed rates, however, are driven by wholesale swap rates that reflect where the market expects the OCR to be in the future — so they can move before the RBNZ acts. Check our live mortgage rate tables to see how current rates compare after the latest OCR decision.

There is no universally “best” term — it depends on the rate environment and your personal circumstances. In a falling-rate cycle, shorter fixed terms (6–12 months) let you re-fix sooner at lower rates. If you want certainty, a 1–2 year term balances a competitive rate with reasonable stability. Use the repayment planner to model different scenarios and find the term that suits your budget.

Most NZ banks require at least a 20% deposit for the best rates. With less than 20%, you enter high-LVR territory and may face a low-equity premium or need mortgage insurance. First-home buyers may qualify with as little as 5–10% through programmes like the Kāinga Ora First Home Grant or a KiwiSaver first-home withdrawal. Run the numbers with our mortgage calculator to see how your deposit size affects repayments.

A break fee applies when you repay a fixed-rate mortgage early or switch to a different rate before the fixed period ends. Banks calculate it based on the difference between your locked-in rate and current wholesale rates, multiplied by the remaining term and loan balance. Break fees can range from a few hundred dollars to tens of thousands. Before making changes, compare current rates on our mortgage comparison page to assess whether switching makes financial sense.

Splitting your mortgage — for example, fixing 70% and keeping 30% floating — is a popular strategy in New Zealand. The fixed portion gives you repayment certainty, while the floating portion lets you make unlimited extra repayments without break fees. This approach hedges against rate movements in either direction. Use the mortgage optimizer to find the best split structure for your situation.

An offset mortgage links a savings or transaction account to your home loan. Your savings balance is deducted from the loan principal when calculating interest — so $50,000 in savings against a $500,000 loan means you pay interest on only $450,000. You still have full access to your savings, and the interest saving is tax-free. Try our offset calculator to see exactly how much you could save over the life of your loan.

Start by looking beyond the headline rate. Consider the comparison rate (which includes standard fees), any cashback offers and their clawback terms, offset or revolving credit features, and low-equity premiums if your LVR is above 80%. RatePal makes this easy — use our mortgage comparison tables to filter by rate type, provider, features and LVR tier all in one place.

Yes, some banks lend to borrowers with as little as 5–10% deposit, but you will face higher rates due to a low-equity margin. The RBNZ limits high-LVR lending, so approval is harder and not guaranteed. First-home buyers can boost their deposit with KiwiSaver withdrawals or a Kāinga Ora First Home Grant. Check which NZ lenders offer low-deposit options by filtering products on RatePal.

Common mortgage fees include an application or establishment fee, valuation fee, legal/conveyancing costs, and potentially a low-equity fee or mortgage insurance if your deposit is under 20%. Some lenders also charge annual or monthly account fees. These costs vary significantly between providers, so it's worth comparing total costs on our mortgage comparison page rather than focusing on interest rate alone.

Banks can change advertised rates at any time, but major repricing typically happens around RBNZ OCR announcements (seven times a year) or when wholesale swap rates shift significantly. Some banks adjust rates within hours of an OCR change; others take days or weeks. RatePal updates rates daily so you always see the latest pricing.

Special rates are discounted rates that banks offer to attract new business — they typically require at least 20% equity and may come with conditions like a minimum loan amount or salary credit. Standard rates are the bank's default pricing and usually sit 0.20–0.60% higher than specials. Always check whether you qualify for the special rate when comparing mortgage products on RatePal.

Refinancing makes sense when you can secure a rate that saves more in interest than any break fees and switching costs combined. Other reasons include accessing better features (like offset or revolving credit), consolidating debt, or releasing equity. Use the repayment planner to compare your current loan against a new deal and see the net savings over time.

A revolving credit facility works like a large overdraft secured against your home. Your salary goes in and reduces the loan balance, which means you pay less interest each day. You can draw funds back out anytime up to your limit. It's most effective when you maintain a low average balance. Compare revolving credit options by selecting the “Revolving” feature filter on our mortgage rates page.