Best Mortgage Rates June 2024 - Lowest fixed rates and latest mortgage news

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.

What is the best mortgage rate June 2024?

At the time of writing, SBS Bank has the lowest mortgage rate publicly advertised.  SBS Bank has a Home Loan at an awesome 5.99% per annum for a 3 years fixed rate.  Specific lending, account and eligibility criteria and Standard Contract Terms along with Credit Fees and Charges apply.  These low mortgage rates with SBS Bank are only available for Residential Home Loans with at least 20% equity and Residential Investing Lending with at least 35% equity, or First Home Loans with at least 5% equity.  All rates are subject to change.

Specialist Mortgage Brokers can often get BETTER rates than you will see advertised.  We strongly recommend always contacting a broker for the lowest possible rates or additional incentives like cashback deals.

Heartland Bank still maintains its reputation for providing some of the most competitive fixed-rate mortgages in recent times.  Heartland bank are offering  a Residential mortgage with a Fixed 3 year term at a low rate of 6.35% (Fixed, 36 months).

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.

What are the current mortgage interest rates in NZ in June 2024?

Rates are not uniform across loan terms, and therefore, there is no definitive answer. As of the latest update,  SBS Bank stands out with the lowest fixed term rate. SBS Mortgage rates in June 2024 are starting at 5.99% They are offering a 3-year fixed mortgage interest rate at 5.99%.  For a 1-year fixed mortgage, the lowest interest rate available is 6.14%, also with SBS Bank. The the lowest floating rate offered by a major bank is BNZ at 6.79%. These rates are subject to change and may vary depending on individual circumstances and market conditions.

Get yourself a great mortgage advisor and the process can be surprisingly simple!

Will NZ Mortgage Rates go up in June 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.

Mortgage Lenders in NZ - Who is the biggest lender in June 2024?

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.

What are the mortgage rates at the big lenders in NZ in June 2024?

We have created a table of the most popular mortgage products in June 2024 from the biggest mortgage lenders in NZ below:

Mortgage Lender One Year Fixed Two Year Fixed Variable
ASB 7.14% 6.75% 8.64%
ANZ 7.14% 6.79% 8.64%
BNZ 7.14% 6.79% 8.69%
Kiwibank 7.79% 6.99% 8.50%
TSB 7.94% 7.55% 9.44%
Westpac 7.24% 6.75% 8.64%

ASB Mortgage Interest Rates June 2024

ASB One Year Fixed rate 7.14% | ASB Two Year Fixed rate 6.75% | 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 Interest Rates June 2024

ANZ One Year Fixed rate 7.14% | 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 Interest Rates June 2024

BNZ One Year Fixed rate 7.14% | 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 Interest Rates June 2024

Kiwibank One Year Fixed rate 7.79% | Kiwibank Two Year Fixed rate 6.99% | 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 Interest Rates June 2024

TSB One Year Fixed rate 7.94% | TSB Two Year Fixed rate 7.55% | TSB Variable rate 9.44%

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 Interest Rates June 2024

Westpac One Year Fixed rate 7.24% | Westpac Two Year Fixed rate 6.75% | 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.

Help buying your first home in New Zealand

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.

Not quite ready to engage in a conversation? No problem. Dive into our wealth of resources available on Money Compare.  From comparison tables of mortgage rates to comprehensive first home buyer guides, we provide accurate and reliable guidance tailored specifically for individuals like you.

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.

Understanding the fluctuations in home loan interest rates, the impact of the OCR (official cash rate), and the dynamics of housing prices can be overwhelming. Amidst this confusion, we offer clarity and support. With up-to-date interest rates, mortgage calculators, and insights from expert advisors, we empower aspiring homeowners to make well-informed decisions on their journey to homeownership.

In June 2024, what is the best lender for a first time buyer in NZ?

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 cheaper mortgage interest rate.

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."

At the time of this publication, mortgage rates ranged from 5.99% for a fixed three-year mortgage with SBS Bank to 7.24% for a one-year term with Westpac. Notably, the standout rate was arguably the one-year fixed rate, again offered by SBS Bank at 6.14%. 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.

How can I Lower my Mortgage Payments?

There are a number of different ways to reduce your monthly repayments on your home loan and your overall home loan payments.  Lower your mortgage payments by implementing some, or all, of 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.

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.

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.

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.

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.

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.

Advice in this type of situation always help. So get in touch with a mortgage expert.  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.

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.

How much mortgage cashback can I get 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.

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.

You CAN own your perfect home. Let us help.

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:

  1. Citizenship or Residency: You must be a New Zealand citizen, permanent resident, or a resident visa holder who is "ordinarily resident in New Zealand."
  2. 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.
  3. Income Thresholds: Your before-tax income from the last 12 months must meet specific thresholds:
    1. a. $95,000 or less for an individual buyer without dependents.
    2. b. $150,000 or less for an individual buyer with one or more dependents.
    3. 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.

Refinance or Refix in June 2024?  The best options for you...

There are various pros and cons when it comes to refinancing with a new lender vs. refixing with your current bank.  When it comes to managing your mortgage, deciding whether to refinance with a new lender or refix with your current bank is a crucial decision. Both options come with their own set of benefits and drawbacks. Here, we explore the pros and cons of each choice to help you make an informed decision.

Refinancing with a New Lender - Pros.

1. Better Interest Rates:
Refinancing with a new lender can potentially offer you more competitive interest rates. This can lead to significant savings over the life of your loan.
2. Flexible Loan Terms:
New lenders may offer more flexible loan terms, including different repayment options, fixed or variable rates, and offset accounts that could better suit your financial situation.
3. Enhanced Features:
By switching to a new lender, you might gain access to enhanced features such as redraw facilities, more generous repayment holidays, or better customer service.
4. Incentives and Discounts:
Many lenders offer incentives such as cashback deals, fee waivers, or discounted rates to attract new customers. These can provide immediate financial benefits.

Refinancing with a New Lender - Cons.

1. Exit Fees and Penalties:
Refinancing often involves exit fees from your current lender, which can negate some of the financial benefits. Additionally, there may be early repayment penalties if you break your current mortgage term.
2. Application and Valuation Costs:
New lenders may require application fees and property valuation costs, adding to the upfront expenses of refinancing.
3. Credit Impact:
Applying for a new mortgage involves a credit check, which can temporarily impact your credit score.
4. Complex Process:
The process of refinancing can be complex and time-consuming, involving paperwork, legalities, and potential delays.

Refixing with Your Current Bank - Pros.

1. Simplicity and Convenience:
Refixing with your current bank is usually a straightforward process, often requiring minimal paperwork and hassle. This makes it a convenient option for many homeowners.
2. Lower Fees:
Since you're staying with your current bank, you can avoid exit fees and other costs associated with switching lenders.
3. Relationship Benefits:
Your existing relationship with your bank might give you leverage to negotiate better rates or terms. Banks value loyal customers and may offer preferential treatment.
4. Stability:
Refixing can provide financial stability, particularly if you're satisfied with your current bank’s services and features.

Refixing with Your Current Bank - Cons.

1. Limited Rate Options:
Sticking with your current bank may mean missing out on more competitive rates offered by other lenders. Your bank’s offerings might not be the best available in the market.
2. Fewer Incentives:
Unlike new lenders, your current bank is less likely to offer attractive incentives or discounts for refixing your mortgage.
3. Complacency Risk:
Staying with your current bank without exploring other options might lead to complacency, potentially costing you in missed savings.
4. Lack of Customization:
Your current bank might have limited loan customization options compared to new lenders, potentially preventing you from finding the perfect mortgage solution for your needs.

So should you refinance or refix?

Choosing between refinancing with a new lender and refixing with your current bank depends on your individual financial situation and long-term goals. Refinancing can offer competitive rates and flexible terms but comes with additional costs and complexities. Refixing is convenient and often cheaper in the short term but may lack the competitive edge of other lenders. Weigh the pros and cons carefully, and consider consulting with a mortgage advisor to make the best decision for your unique circumstances.  If you want independent, expert advice - get in touch!  Our team offer a free service to help you make an informed choice on your mortgage needs. Request a call here.