ANZ Cuts Interest Rates: Latest 2025 Home Loan Changes

ANZ New Zealand has been busy adjusting its home loan rates throughout 2025 — cutting some while signaling increases for others. For borrowers deciding whether to fix or float, the picture is anything but straightforward. Here’s a breakdown of what’s actually happened, what comes next, and what to watch.

Floating home loan rate cut to: 5.69% ·
Flexible home loan rate cut to: 5.80% ·
One-year home loan rate reduced to: 4.49% ·
Previous floating rate cut to: 6.29% ·
Variable rate increase announced for: 27 March 2026

Key ANZ rate changes in 2025

The following figures represent ANZ NZ’s most significant rate adjustments documented across official announcements and verified financial reporting.

Has ANZ cut interest rates?

Yes — repeatedly in 2025. ANZ New Zealand lowered its floating home loan rate by 20 basis points to 5.69% and its flexible rate to 5.80% on 28 November 2025, following the Reserve Bank of New Zealand’s cut of the Official Cash Rate to 2.25% (ANZ NZ Newsroom). The bank has now reduced floating rates by a cumulative 2.75% since August 2024, while the 1-year fixed special has dropped to 4.49% — the lowest level since June 2022.

Recent announcements

The pace of change has been notable. ANZ sliced 40 basis points off its floating rate in October alone, bringing it to 5.89%, after the RBNZ reduced the OCR to 2.50% (ANZ NZ Newsroom). A week before that announcement, the 1-year fixed special had already fallen 26 basis points to 4.49%. “When the OCR was increasing, we increased our floating home loan rates by 105 basis points less than the total OCR hikes,” said Grant Knuckey, ANZ NZ Managing Director. “As the OCR has come down, we’ve cut our floating home loan rate by 30 basis points less than the total of OCR cuts to date” (ANZ NZ Newsroom).

Affected loan types

The cuts have touched floating, flexible, and fixed products. Standard fixed rates also came down in October, with the 6-month dropping to 5.39%, the 18-month and 2-year to 5.09%, and 3-5 year terms to 5.49% (1News financial reporting). Special rates moved further — the 6-month to 4.79%, the 18-month, 2-year, and 3-year all to 4.49%. Around 12% of ANZ NZ home loans sit on floating rates, with the majority fixed.

Will mortgage rates drop to 3% again?

There’s no clear signal that rates will return to the sub-3% territory seen in 2020-2021. The RBNZ has reportedly signaled a pause at the current 2.25% OCR level, suggesting the aggressive cutting cycle may be taking a breather (MoneyHub NZ interest rate analysis). Meanwhile, ANZ raised its longer-term fixed rates in December 2025 — the 18-month and 2-year increased 20 basis points, and 3-5 year terms went up 30 basis points (1News financial reporting).

Historical context

The last time New Zealand mortgage rates sat comfortably at 3% was during the pandemic-era stimulus, when the RBNZ slashed the OCR to 0.25%. Fixed rates have been on a steep climb since 2022 as inflation took hold globally. ANZ’s 1-year fixed special at 4.49% is the lowest since June 2022, but that’s still roughly 150 basis points above the pandemic lows.

Current trends

Swap rates — the benchmarks banks use to price fixed rates — have climbed back toward March 2025 levels, with 4-5 year swaps now sitting at 5.79-5.99% (Interest.co.nz market analysis). ANZ’s December increases to longer fixed terms reflect that pressure. The implication: shorter fixed terms may hold their advantage over 2026, but borrowers locking in longer periods face a different math.

Is 4.75 a good interest rate?

By late-2025 standards, 4.75% sits awkwardly — above ANZ’s market-leading 1-year special of 4.49%, but below the current floating rate of 5.69%. Whether it’s “good” depends on what product you’re comparing and whether you’ve locked in yet.

Comparison to ANZ rates

• 1-year fixed special: 4.49% — beats 4.75% by 26 basis points
• 6-month special: 4.69% — still under 4.75%
• Floating rate: 5.69% — significantly above 4.75%
• Longer fixed (3-5yr): 5.49%+ — above 4.75%

ANZ is currently offering the lowest 6 and 12-month fixed rates among the five main banks following its December adjustments (Interest.co.nz bank comparison). A borrower on 4.75% right now could likely do better by switching to the 1-year special — though the window for doing so at that rate may be closing as ANZ raises its longer fixed terms.

Market benchmarks

For context, a $500,000 home loan at the current 1-year rate of 4.49% saves roughly $10,000 per year compared to what a borrower would have paid at the March 2024 rate of 7.39% over a 25-year term (ANZ NZ official announcement). That relief is real, even if 4.49% still feels high by historical standards.

Should I fix for 3 or 5 years?

The answer hinges on what you think happens next — and on how much certainty you need in your household budget.

Pros and cons of terms

ANZ fixed rate options

ANZ’s current specials favor shorter terms. The 1-year at 4.49% is the standout, while 18-month and 2-year options sit at 4.49% as well (1News financial reporting). The bank’s longer fixed rates climbed 20-30 basis points in December 2025, partly in response to wholesale market shifts and partly to manage short-term lending behavior. “Changes to the OCR affect floating mortgage rates more directly,” Knuckey noted (1News financial reporting).

Borrowers who want certainty but are watching their cash flow may find the 1-year special the most flexible position — able to reprice quickly if the RBNZ resumes cutting, while still offering protection against near-term increases.

How to get a 4% interest rate on a mortgage?

ANZ is already offering rates at or near 4% for shorter fixed terms — the 1-year special sits at 4.49% and the 6-month special at 4.69% (1News financial reporting). Getting there — or closer — involves a few practical levers.

Improve eligibility

• Build equity: lenders offer better rates to borrowers with lower LVR (loan-to-value ratios under 80%)
• Demonstrate stable income: payslips, employment history, and bank statements help
• Reduce other debts: credit cards and personal loans affect serviceability assessments
• Consider splitting your loan: a portion on a lower fixed rate, the remainder on floating or a different term

Shop around rivals

ANZ leads on its 6 and 12-month specials post-December, but competitors may match or undercut on specific products. ANZ matched rival cuts on its 6-month special in December, bringing it to 4.69% (Interest.co.nz market analysis). That competition can work in borrowers’ favor — but only if they ask.

ANZ’s rate cuts in context: what the data shows

Five rate moves across 2025 tell a story of a bank responding to a rapidly falling OCR while managing its own cost pressures. The RBNZ cut the OCR from 3.75% in February to 2.25% by November — a 150 basis point reduction — but ANZ’s floating rate has fallen only 2.75% over the same span since August 2024.

For NZ borrowers watching ANZ’s moves, the practical takeaway is straightforward: shorter fixed terms are where the deals are right now, and they won’t stay that way forever. As longer fixed rates climb and the bank has signaled an upcoming increase on variable products, the window to lock in at 4.49% may be narrowing. More than 40% of ANZ’s home loan customers are ahead on their payments by six months or more — suggesting many borrowers are already in a position to consider refixing rather than waiting.