Here at PriceMe we are dedicated to helping Kiwis compare and save, and through our sister site, Money Compare that extends to helping you compare the latest mortgage rates, find out the most up to date borrowing news and help you to request the very best, free, mortgage advice for Kiwis.
The Money Compare website compares mortgage rates in a simple and straightforward manner with a sortable table of the latest home loan interest rates from all New Zealand lenders.
You are already smart enough to save money when you buy an appliance, mobile phone or new television so why aren’t you using PriceMe and Money Compare to help you save money on your mortgage and reduce your mortgage payments.
The Money Compare mortgage comparison tables allow you to compare mortgage rates based on loan term, interest rate or provider. We can put you in touch with expert mortgage advisors for free and give you access to impartial mortgage calculators and useful property purchasing guides.
So whilst Money Compare will give you all the raw data you need to make an informed decision on home loan borrowing, our expert advisors will likely have some options you may not know about or have considered. Get in touch and request a mortgage health check or first time buyer assessment today.
How Can I Reduce my Mortgage Payment?
There are several strategies you should consider to reduce your mortgage payments:
Refinance your mortgage: If interest rates have changed since you initially took out your mortgage, refinancing your loan to a lower interest rate could significantly reduce your monthly payments. However, be sure to consider any associated fees and closing costs when evaluating whether refinancing is the right option for you or get advice from an expert who can help.
Extend your loan term: Extending the term of your mortgage, such as 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 will reduce your monthly payments, you are very likely to end up paying more in total interest over the life of the loan.
Make extra payments: Making additional payments towards your principal balance can help you pay off your mortgage faster and reduce the total amount of interest you pay over time. Even small additional payments can add up and make a significant difference in the long run.
Pay weekly or bi-weekly instead of monthly: Instead of making monthly mortgage payments, consider switching to a shorter payment schedule. By making half of your monthly payment every two weeks, you'll make an extra payment each year, which can help you pay off your mortgage sooner and reduce the total interest paid.
Consider interest only options: If you're struggling to make your mortgage payments due to financial hardship, you may be eligible for a change in the type of mortgage you have. Whether you can make the change will depend on various criteria but a mortgage advisor can help with this. A move to interest only for a short term may be a good option.
Save money on other costs: If you have a mortgage then you likely have buildings or home insurance, contents insurance, power bills and broadband bills. All of these payments add up and if you can save $20-$30 a month on each of them then your mortgage payment will become more manageable. Use the other NZ Compare sites to shop around for better rates. Lowering your insurance premiums by changing home insurance provider is a great place to start and will help reduce your overall monthly outgoings to make your mortgage payment easier.
Before implementing any of these strategies, it's essential to carefully evaluate your financial situation and consider consulting with a financial advisor or mortgage professional to determine the best approach for your specific circumstances.
Which bank has the best mortgage rate right now?
Heartland Bank has been consistently offering some of the lowest fixed rate mortgages in recent years. For the latest mortgage rates check out the comparison tables at Money Compare where you can easily filter and compare mortgage rates based on term of loan. Compare one year mortgage rates, compare two year mortgage rates, compare five year mortgage rates and compare variable rate mortgages.
Cashback Mortgage offers in NZ
Mortgage cashback or home loan incentives in New Zealand are special offers provided by lenders to entice borrowers to choose their mortgage products over other lenders. These incentives typically involve the lender offering 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 get the best possible cashback is by using a mortgage advisor. These mortgage advisors have access to rates and home loan incentives that are not publicly advertised.
The cashback amount can vary depending on the lender and the specific terms of the offer. In some cases, the cashback may be a fixed amount, while in others, it may be calculated as a percentage of the loan amount. The bigger your loan, the bigger the cash back amount. Additionally, some lenders may offer other incentives such as reduced interest rates, waived fees, or contribution towards legal or valuation costs.
Mortgage cashback offers can be appealing to borrowers as they provide immediate financial assistance that can help offset some of the upfront costs associated with purchasing a home or refinancing a mortgage. However, it's important for borrowers to carefully consider the terms and conditions of the cashback offer, including any eligibility criteria, minimum loan amounts, and potential impact on the overall cost of the mortgage. Be careful that the lender is not giving with one hand and taking with the other.
Mortgage cashback or home loan incentives can be a valuable perk for borrowers, but it's essential to thoroughly review the details of the offer and compare it with other mortgage options to ensure it aligns with your financial goals and circumstances. Leave your details for one of our advisors to get in touch and discuss the best options for your situation.
What is the current mortgage rate in NZ?
There is no single answer as rates vary depending on loan term. At the time of writing Heartland Bank currently offers the lowest 2 year fixed mortgage interest rate at 6.45%. The lowest 1 year fixed mortgage interest rate is 6.69% and the lowest floating rate with a major bank is 6.79%.
Will NZ Mortgage Rates go down in 2024?
Yes. Our experts believe that interest rates have hit their peak. Cuts to the OCR should happen in the second half of 2024 with a reduction in mortgage rates to follow those cuts. We have already seen mortgage rates falling in 2024.
Whilst there are no guarantees on how rates will trend, we do know that mortgage rates are irrevocably tied to the official cash rate (OCR) which is set by the Monetary Policy Committee (MPC) at the Reserve Bank of New Zealand.
Who are the Biggest Mortgage Lenders in NZ
The banks with the most money have the most mortgages. In NZ that is the big four banks with ANZ being the largest mortgage lender in NZ. ANZ is followed by ASB, Westpac and BNZ. Kiwibank is starting to increase their lending in the mortgage arena with the bulk of their lending tied to property in NZ.
In the section below we have compared the big six lenders to show how similar their rates are - but these can always be negotiated by a mortgage broker.
| Mortgage Lender | One Year Fixed Rate Mortgage |
Two Year Fixed Rate Mortgage |
Variable Rate Mortgage |
|---|---|---|---|
| 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 Home Loan 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 Home Loan 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 Home Loan 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 Home Loan 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 Home Loan 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 Home Loan 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.
First Home Buyer Advice for NZ
Are you dreaming of owning your own home but feeling overwhelmed by the complexities of getting on the property ladder in New Zealand? Well, we believe that PriceMe and Money Compare can help.
Navigating the path to homeownership as a first-time buyer in New Zealand can feel like embarking on a daunting journey filled with uncertainty. If you don’t want to be reading all of our great home buyer advice then we recommend you request a call from one of our mortgage experts. The Umbrella Company is a bespoke mortgage advisory service that is free to use, specialize in first time buyers and have access to great interest rates that you won’t see advertised. Request a call by completing the sort form found here.
Not ready to talk to someone yet? Then read on because we have an abundance of information available from PriceMe sister site, Money Compare. From mortgage rate comparison tables to first home buyer guides, we have accurate and reliable guidance tailored specifically for first-time buyers.
With home loan interest rates constantly changing, the OCR (whatever that is?!?) moving and impacting mortgage borrowing rates and house prices constantly rising and falling without any sort of reason (or so it seems), sifting through the noise to uncover trustworthy first-time homebuyer advice can be overwhelming, but that is where we help.
Many aspiring homeowners find themselves inundated with conflicting information, outdated resources, and ambiguous terminology, making it difficult to make a fully informed decision. In this ever-changing environment, having access to accurate interest rates, mortgage calculators and up-to-date information from expert mortgage advisors is paramount for those embarking on their homeownership journey.
Best First Home Buyer Mortgage in NZ
The best first-time buyer mortgage in NZ is arguably whatever mortgage you can get that gets you on the property ladder. It is like the old question, “When is the best time to buy a house?” The answer? “Yesterday”.
Mortgage interest rates for first home buyers are generally the same as for other borrowers, you don’t get penalized for buying your first property. Interest rates are set for the loan and borrower based upon the period of time the loan is for, how much and how much deposit or equity you have available. As a general rule, the bigger deposit you have the better the mortgage rate you can get.
Mortgage rates when this article was published were sitting at anything from 6.69% for a fixed one year mortgage with Heartland Bank to 7.89% for one year with Westpac. The ‘best’ mortgage rate at time of publishing was arguably the two year fixed rate with, again Heartland Bank at 6.45%. Some other factors to consider include mortgage cashback or home loan incentives that give you a lump sum when you take out the loan, effectively reducing your interest rate by giving you a cash payout – this can be up to 1% cashback and our mortgage advisors know the best way to leverage these offers which aren’t always advertised publicly.
What is a First Home Loan from Kāinga Ora?
This is an excellent scheme for First Home buyers in NZ. A First Home Loan can make it easier for you to get into your first home by lowering the required deposit to 5%.
Securing the deposit for your initial home purchase can present a formidable hurdle, particularly given that many lenders currently stipulate a minimum 20% deposit. However, the introduction of First Home Loans has transformed this landscape, offering a lifeline to prospective homeowners by requiring only a 5% deposit. This significantly lowers the barrier to entry, making the dream of homeownership more attainable than ever before.
First Home Loans are facilitated by designated banks and lenders, with backing from Kāinga Ora. This collaboration enables lenders to extend loans that would typically fall outside their standard lending criteria, providing a vital opportunity for individuals to step onto the property ladder.
If you're considering a First Home Loan, it's essential to engage in a conversation with an independent mortgage advisor (click here to request a call) or a participating lender to explore your needs and unique circumstances. This tailored approach ensures that you receive the guidance and support necessary to navigate the process effectively and secure your first home with confidence.
Which banks offer Kāinga Ora First Home Loan Mortgages?
There are a number of banks in New Zealand that offer 5% deposit First Home Loan Mortgages.
These include; Westpac, Kiwibank, SBS Bank, The Co-operative Bank, Unity Money, The Nelson Building Society and NZHL. Our advisors will know if this list has changed.
Whilst the government and Kāinga Ora sets the eligibility criteria, it is then down to the bank or lender to assess First Home Loan applications, and make the final lending decision.
How much deposit do I need to buy a house in NZ?
Commonly NZ lenders require 20% deposits at the current time, however you can achieve home ownership with as little as a 5% deposit depending on your circumstances. We can help advise on how much deposit you need.
What is the lowest deposit for an NZ mortgage?
5% deposit mortgages are available if you meet specific criteria. Our
What is the lending criteria for a 5% deposit mortgage in NZ?
This will vary according to the lending criteria of the bank or non bank lender that you are borrowing from. If you are applying for a Kāinga Ora First Home Loan there are some additional eligibility criteria to meet. To be eligible for a First Home Loan, you must:
- Be a New Zealand citizen, permanent resident, or a resident visa holder who is "ordinarily resident in New Zealand"
- Be a first home buyer, or a previous home owner in a similar financial position to a first home buyer
- Have a before tax income from the last 12 months of:
- $95,000 or less for an individual buyer without dependents; or
- $150,000 or less for an individual buyer with one or more dependents; or
- $150,000 or less (combined) for two or more buyers, regardless of the number of dependents
Can you get a mortgage with 10% deposit?
Yes, it is possible to obtain a mortgage in New Zealand with a 10% deposit. While many lenders prefer a larger deposit, typically around 20%, there are options available for borrowers with a smaller deposit. Speak to the Money Compare mortgage advisors for free with no obligation.
Some lenders in New Zealand offer mortgages with a deposit as low as 10% or 5% if you qualify for the Kāinga Ora First Home Loan. However, it's essential to note that borrowing with a smaller deposit may come with certain conditions, such as higher interest rates or the requirement to pay Lenders Mortgage Insurance (LMI) to protect the lender in case of default.
Additionally, eligibility criteria for mortgages with a 10% deposit may vary between lenders, and factors such as credit history, income stability, and debt levels may influence the lender's decision.
If you're considering purchasing a home with a 10% deposit, it's advisable to speak with a mortgage advisor who can provide personalized advice based on your financial situation and help you explore the available options.
5% Deposit Mortgages in NZ – Compare Low Deposit Home Loans in NZ
Money Compare lists and compares the mortgage rates from all the 5% deposit lenders in NZ. If you're considering purchasing a home with a 5% deposit, or need some advice on how to do it, we advise that you contact a mortgage advisor who can provide personalized advice based on your financial situation and help you explore the available options. Request a free call here.
If you still need more advice, (which, let's be honest, you should... you are thinking of buying a house!!) then visit Money Compare for heaps of finance news, information and tools to help you compare mortgage interest rates and much, much more.
