At NZ Compare, our mission is to empower Kiwis to make informed decisions and save money. Through Money Compare, our financial services comparison website, we provide you with the tools and resources to compare the latest mortgage rates, stay informed on borrowing news, and access top-notch, free mortgage advice tailored to Kiwis.
The Money Compare website simplifies the process of comparing mortgage rates with a user-friendly table displaying the latest home loan interest rates from all lenders in New Zealand. Whether you're looking to save money on your mortgage or reduce your monthly payments, Money Compare can help.
In addition to mortgage comparison tables, Money Compare offers access to expert mortgage advisors at no cost. Our advisors can provide personalized guidance and connect you with impartial mortgage calculators and property purchasing guides to support your decision-making process.
Money Compare can help you save money on your mortgage and reduce your mortgage payments whilst other NZ Compare sites like Broadband Compare (save on broadband), Power Compare (save on power), Mobile Compare (save on mobile) and PriceMe save money when you buy appliances, mobile phone, a new television, basically anything!
Money Compare equips you with essential data for making informed borrowing decisions, but our expert advisors can offer insights and options you may not have considered. Contact us today to request a mortgage health check or a first-time buyer assessment and take the next step toward securing your dream home.
Can I Reduce my Mortgage Payments?
To effectively reduce your mortgage payments, consider implementing these strategies:
Refinance your mortgage: If interest rates have changed since you initially obtained your mortgage, refinancing to a lower rate could significantly decrease your monthly payments. However, weigh the associated fees and closing costs before making a decision, or seek advice from an expert for guidance.
Extend your loan term: Lengthening your mortgage term, such as switching from a 15-year to a 30-year term, can lower your monthly payments by spreading them out over a longer period. Keep in mind that while this reduces monthly payments, it may increase total interest paid over the loan's lifespan.
Pay weekly or bi-weekly: Switching to a more frequent payment schedule, such as bi-weekly payments, enables you to make an extra payment each year. This approach expedites mortgage payoff and minimizes total interest costs.
Make extra payments: Contributing additional funds toward your principal balance accelerates mortgage repayment, ultimately reducing total interest payments over time. Even small extra payments can accumulate and yield substantial long-term savings.
Save on other expenses: Review your ancillary costs, such as insurance premiums, power bills, and broadband expenses. By shopping around for better rates and potentially switching providers, you can save money and make your mortgage payments more manageable. The other NZ Compare sites can help with this.
Consider interest-only options: If facing financial challenges, explore the possibility of transitioning to an interest-only mortgage for a short term. Eligibility for this change varies, but a mortgage advisor can provide guidance on suitability.
Before implementing any of these strategies, conduct a thorough assessment of your financial circumstances and make a budget. Seeking guidance from a financial advisor or mortgage professional ensures you choose the most suitable approach for your situation.
What is the best mortgage rate right now?
Heartland Bank has maintained its reputation for providing some of the most competitive fixed-rate mortgages in recent times. To stay updated on their latest offerings, explore the comparison tables available on Money Compare. Here, you can conveniently filter and compare mortgage rates according to the loan term. Whether you're interested in one-year, two-year, five-year fixed-rate mortgages, or variable rate options, Money Compare enables you to make informed decisions by presenting all available options in one place.
Can I get Cashback on my Mortgage in New Zealand?
Yes. Mortgage cashback or home loan incentives in New Zealand are enticing offers provided by lenders to attract borrowers to their mortgage products over those of competitors. These incentives often involve the lender providing a cash payment or other benefits to the borrower upon taking out a new home loan or refinancing an existing mortgage.
The best way to secure the most favorable cashback offer is by utilizing the services of a mortgage advisor. These professionals have access to rates and home loan incentives that are not publicly advertised, ensuring borrowers can maximize their benefits.
The cashback amount can vary depending on the lender and the specific terms of the offer. It may be a fixed amount or calculated as a percentage of the loan amount, with larger loans typically yielding larger cashback amounts. Additionally, some lenders may provide additional incentives such as reduced interest rates, waived fees, or contributions toward legal or valuation costs.
While mortgage cashback offers provide immediate financial assistance to offset upfront costs associated with home purchase or refinancing, borrowers must carefully review the offer's terms and conditions. This includes assessing eligibility criteria, minimum loan amounts, and potential impacts on the overall mortgage cost. It's crucial to ensure that the lender's incentives do not come with hidden drawbacks.
While mortgage cashback or home loan incentives can be advantageous, borrowers should conduct thorough comparisons with other mortgage options to align with their financial goals and circumstances. To explore the best options for your situation, leave your details for one of our advisors to reach out and provide personalized guidance.
What is the best cashback mortgage in NZ?
This changes all the time. To get the best cashback rate, use an excellent mortgage broker. They have rates and offers unavailable to the general public and can negotiate an extra percentage point or two of mortgage cashback on your behalf.
How much interest is the current mortgage rate in NZ?
Rates are not uniform across loan terms, and therefore, there is no definitive answer. As of the latest update, Heartland Bank stands out with the most competitive rate, offering a 2-year fixed mortgage interest rate at 6.45%. For a 1-year fixed mortgage, the lowest interest rate available is 6.69%, while the lowest floating rate offered by a major bank is 6.79%. These rates are subject to change and may vary depending on individual circumstances and market conditions.
Will NZ Mortgage Rates go up in 2024?
No. We don’t think so.
Our experts foresee that interest rates have reached their peak. Anticipated cuts to the OCR are expected to materialize in the latter part of 2024, subsequently leading to reductions in mortgage rates. Notably, we've observed mortgage rates declining throughout 2024. Although future rate trends are uncertain, it's essential to recognize that mortgage rates are intricately linked to the official cash rate (OCR), determined by the Monetary Policy Committee (MPC) at the Reserve Bank of New Zealand.
Who are the biggest Mortgage Lenders in New Zealand
The banks with the largest reserves typically hold the most mortgages, and in New Zealand, this primarily refers to the big four banks. ANZ stands out as the largest mortgage lender in the country, followed closely by ASB, Westpac, and BNZ. Notably, Kiwibank is expanding its presence in the mortgage market, with a significant portion of its lending activities directed towards property in New Zealand.
Compare the most popular mortgage lender rates in NZ
We have created a table of the most popular mortgage products from the most popular mortgage lenders in NZ below:
| Mortgage Lender | One Year Fixed | Two Year Fixed | Variable |
|---|---|---|---|
| ASB | 7.24% | 6.79% | 8.64% |
| ANZ | 7.24% | 6.79% | 8.64% |
| BNZ | 7.24% | 6.79% | 8.69% |
| Kiwibank | 7.25% | 6.79% | 8.50% |
| TSB | 7.24% | 6.75% | 8.64% |
| Westpac | 7.29% | 6.89% | 8.64% |
ASB Mortgage Rates March 2024
ASB One Year Fixed rate 7.24% | ASB Two Year Fixed rate 6.79% | ASB Variable rate 8.64%
You can view the latest ASB home loan interest rates for fixed and variable loans at Money Compare where you can also easily compare with other lenders and request mortgage advice.
ANZ Mortgage Rates March 2024
ANZ One Year Fixed rate 7.24% | ANZ Two Year Fixed rate 6.79% | ANZ Variable rate 8.64%
You can view the latest ANZ home loan interest rates for fixed and variable loans at Money Compare where you can also easily compare with other lenders and request mortgage advice.
BNZ Mortgage Rates March 2024
BNZ One Year Fixed rate 7.24% | BNZ Two Year Fixed rate 6.79% | BNZ Variable rate 8.69%
You can view the latest BNZ home loan interest rates for fixed and variable loans at Money Compare where you can also easily compare with other lenders and request mortgage advice.
Kiwibank Mortgage Rates March 2024
Kiwibank One Year Fixed rate 7.25% | Kiwibank Two Year Fixed rate 6.79% | Kiwibank Variable rate 8.50%
You can view the latest Kiwibank home loan interest rates for fixed and variable loans at Money Compare where you can also easily compare with other lenders and request mortgage advice.
TSB Mortgage Rates March 2024
TSB One Year Fixed rate 7.24% | TSB Two Year Fixed rate 6.75% | TSB Variable rate 8.64%
You can view the latest TSB home loan interest rates for fixed and variable loans at Money Compare where you can also easily compare with other lenders and request mortgage advice.
Westpac Mortgage Rates March 2024
Westpac One Year Fixed rate 7.29% | Westpac Two Year Fixed rate 6.89% | Westpac Variable rate 8.64%
You can view the latest Westpac home loan interest rates for fixed and variable loans at Money Compare where you can also easily compare with other lenders and request mortgage advice.
Simple advice to help you buy your first home in NZ
Are you aspiring to own your own home but feeling overwhelmed by the intricacies of entering the property market in New Zealand? Fear not, for Money Compare is here to assist.
Embarking on the path to homeownership as a first-time buyer in New Zealand can seem like a daunting endeavor, filled with uncertainties. If you prefer not to delve into extensive homebuyer advice on your own, we recommend reaching out to one of our mortgage experts through The Umbrella Company. This bespoke mortgage advisory service is specialized in assisting first-time buyers and offers access to exceptional interest rates not typically advertised. Simply request a call by completing the form found here.
Not quite ready to engage in a conversation? No problem. Dive into our wealth of resources available on Money Compare, our sister site. From comparison tables of mortgage rates to comprehensive first home buyer guides, we provide accurate and reliable guidance tailored specifically for individuals like you.
Navigating the fluctuations of home loan interest rates, deciphering the impact of the OCR (official cash rate), and understanding the dynamics of housing prices can be overwhelming. Amidst the noise and confusion, we strive to provide clarity and support. With access to current interest rates, mortgage calculators, and insights from expert mortgage advisors, we aim to empower aspiring homeowners to make well-informed decisions as they embark on their homeownership journey.
What is the best home loan for a first time buyer in NZ?
When it comes to securing your first-time buyer mortgage in NZ, the best option is often whichever mortgage enables you to step onto the property ladder. It's akin to the age-old query, "When is the best time to buy a house?" The timeless response? "Yesterday."
Fortunately, mortgage interest rates for first home buyers typically mirror those for other borrowers, meaning there's no penalty for purchasing your initial property. These rates are determined by factors such as the loan duration, loan amount, and available deposit or equity. Generally, a larger deposit results in a more favorable mortgage rate.
At the time of this publication, mortgage rates ranged from 6.69% for a fixed one-year mortgage with Heartland Bank to 7.89% for a one-year term with Westpac. Notably, the standout rate was arguably the two-year fixed rate, again offered by Heartland Bank at 6.45%. Additionally, consider mortgage cashback or home loan incentives, which provide a lump sum upon loan initiation, effectively reducing your interest rate. These incentives can amount to up to 1% cashback, and our mortgage advisors possess insights on leveraging such offers, which may not always be publicly advertised.
Can I qualify for the First Home Loan from Kāinga Ora?
The First Home Loan initiative in NZ stands as a remarkable opportunity for prospective homeowners. By requiring only a 5% deposit, this scheme significantly reduces the financial barrier to entry and makes the dream of owning your first home more achievable.
Traditionally, securing the necessary deposit for a home purchase could be daunting, with many lenders mandating a minimum 20% deposit. However, the introduction of First Home Loans has transformed this landscape, providing a lifeline to individuals eager to step onto the property ladder.
Administered by designated banks and lenders with support from Kāinga Ora, First Home Loans enable borrowers to access financing that may fall outside standard lending criteria. This collaborative effort opens doors for aspiring homeowners, empowering them to realize their homeownership aspirations.
If you're considering a First Home Loan, we recommend initiating a conversation with an independent mortgage advisor or a participating lender. By doing so, you can tailor your approach to align with your unique needs and circumstances, ensuring you navigate the process with confidence and secure your first home with ease. Click here to request a call and take the first step towards homeownership today.
Which lenders offer a Kāinga Ora First Home Loan Mortgage?
Several banks in New Zealand extend First Home Loan Mortgages with a 5% deposit requirement. These include Westpac, Kiwibank, SBS Bank, The Co-operative Bank, Unity Money, The Nelson Building Society, and NZHL. Our advisors stay updated on any changes to this list.
While the government and Kāinga Ora establish the eligibility criteria, the responsibility for evaluating First Home Loan applications and making lending decisions ultimately lies with the respective banks or lenders.
What amount of deposit do I need to buy a house?
NZ lenders require 20% deposits as standard at the current time. BUT, you can achieve home ownership with as little as a 5% deposit depending on your circumstances. Get in touch to discuss options.
Can I get an NZ mortgage with a small deposit?
Yes. You may be able to. 5% deposit mortgages are available if you meet specific criteria.
Explain the lending criteria for a 5% deposit mortgage in NZ
The eligibility requirements for a First Home Loan vary depending on the lending criteria of the bank or non-bank lender you're borrowing from. However, if you're applying for a Kāinga Ora First Home Loan, there are additional criteria to consider. To qualify for a First Home Loan, you must meet the following conditions:
- Citizenship or Residency: You must be a New Zealand citizen, permanent resident, or a resident visa holder who is "ordinarily resident in New Zealand."
- First Home Buyer Status: You must be a first home buyer or a previous homeowner in a similar financial position to a first home buyer.
- Income Thresholds: Your before-tax income from the last 12 months must meet specific thresholds:
- a. $95,000 or less for an individual buyer without dependents.
- b. $150,000 or less for an individual buyer with one or more dependents.
- c. $150,000 or less (combined) for two or more buyers, regardless of the number of dependents.
Can I buy a house with a 10% deposit?
Yes, it's indeed possible to secure a mortgage in New Zealand with a 10% deposit. Although many lenders typically prefer larger deposits, usually around 20%, there are avenues open to borrowers with a smaller deposit. For expert guidance and advice tailored to your circumstances, reach out to the Money Compare mortgage advisors. Their services are free, with no obligation attached.
Certain lenders in New Zealand offer mortgages requiring deposits as low as 10% or even 5% for those eligible for the Kāinga Ora First Home Loan. However, it's important to be aware that borrowing with a smaller deposit may entail certain conditions, such as higher interest rates or the necessity to pay Lenders Mortgage Insurance (LMI) to safeguard the lender against default.
You should note that eligibility criteria for mortgages with a 10% deposit can vary among lenders. Factors such as credit history, income stability, and existing debt levels may influence the lender's decision.
If you're contemplating purchasing a home with a 10% deposit, it's advisable to consult with a mortgage advisor. They can offer personalized guidance based on your financial situation and assist you in exploring the available options.
Compare Low Deposit Mortgages in NZ – The best options
Money Compare provides comprehensive listings and comparisons of mortgage rates offered by all lenders in NZ that accept a 5% deposit. If you're contemplating purchasing a home with a 5% deposit or seeking guidance on how to proceed, we recommend reaching out to a mortgage advisor. They can offer personalized advice tailored to your financial circumstances and assist you in navigating the available options. Request a free consultation here to start exploring your options today.
