BNZ raises key fixed home loan rates as broader rate pressures build

Tue, 05 May 2026 13:31:00 +0200

BNZ has increased several of its fixed home loan rates, bringing them closer to the pricing offered by its main competitors. The bank lifted its 18-month fixed rate by 10 basis points to 4.95%, matching ASB for the lowest rate among the major banks at that term. Its two-year fixed rate also rose 10 basis points to 5.19%, which now matches Westpac as the lowest among the main banks for that period. The three-year fixed rate moved up 10 basis points as well, to 5.39%, leaving it above Westpac’s 5.29% offering.

The article places BNZ’s changes in a wider context of rising rate pressure. Locally, the Reserve Bank of New Zealand is watching mortgage demand, inflation, and a weakening property market. Markets do not expect an OCR hike at the May 27 review, but they do expect increases later in the year and possibly several more after that. Internationally, higher global benchmark rates and expected movements from the Reserve Bank of Australia could also push New Zealand borrowing costs high