Home Loan Rates Are Dropping – But Look Who Quietly Beat ANZ to the Punch

There’s no denying it: after the Reserve Bank’s OCR cut last week, interest rates are finally starting to fall – and fast.

ANZ made headlines with a sharp round of fixed rate drops this week, bringing its 18-month special down to 4.89% and its one-year fixed rate to 4.95%. That’s the lowest ANZ’s fixed rates have been in over three years, and a welcome reprieve for buyers and refixers alike.

But while ANZ grabbed the media limelight, another couple of major banks quietly undercut them on a key rate: Westpac and BNZ are now offering a three-year fixed rate below 5% – something ANZ hasn’t matched.

Westpac’s 3-year fixed rate currently sits at 4.95% p.a. for borrowers with at least 20% equity – a significant milestone. It signals that lenders are starting to get more comfortable with the longer-term outlook and are willing to pass those expectations on to borrowers.

While we expect other banks may soon follow suit, right now Westpac and BNZ are the only major banks offering sub-5% on the three-year term.

This isn’t just rate watching for fun – locking in a competitive longer-term rate can give homeowners peace of mind through multiple OCR review cycles. That’s especially true for buyers or refinancers who want or need certainty and don’t want to gamble on short-term market timing.

As advisers, we’re also mindful of how lender relationships affect your long-term experience. We are not tied to one or two banks – we work with a wide range of lenders and always aim to find the best fit for your specific needs. That means you can trust that our recommendations are based on what’s right for you, not biased toward any one provider. 

If your current fixed rate is coming to an end, or you’re exploring a new purchase, now’s a great time to talk. We can help you make sense of the market shifts and work through the best structure for your goals.

Get in touch to review your options – these rates are changing by the day.

Article by Sarah Maclennan

Get in touch today and we can help you take the next step with confidence.

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.