ANZ raised fixed mortgage rates in early June. When its competitors held or cut, ANZ found itself offside. Three weeks later, it has reversed the increases and cut term deposit rates at the same time.
ANZ, New Zealand's largest mortgage lender, has reversed the fixed home loan rate increases it made in early June — and cut a wider range of term deposit rates at the same time.
The move is a notable retreat. When ANZ raised all its fixed mortgage rates in early June, none of its main competitors followed. As interest.co.nz reported, Westpac and other lenders held or cut, leaving ANZ as the most expensive option across several terms.
The result: ANZ is now back in line with competitors. Its new one-year rate of 4.65 percent matches ASB and BNZ. Its two-year rate of 5.29 percent still leads the market but now matches Kiwibank, with BNZ and Westpac both lower at 5.19 percent. Its three-year rate of 5.49 percent is mid-pack alongside Kiwibank, while Westpac sits lower at 5.29 percent.
Simultaneously, ANZ cut a range of term deposit rates by 10 basis points for terms up to five months, and by 20 basis points for its two-year term deposit. The bank said the cuts to fixed rates were "a response to a fall in wholesale interest rates" — though swap rates did not shift materially during the period ANZ was raising its rates.
The episode illustrates the gap between what wholesale markets do and what retail borrowers actually pay. Wholesale rates can move, but individual banks' pricing decisions also reflect competitive positioning, customer mix, and margin targets. The context for rate competition is a housing market that has remained flat, with another flat month recorded in June 2026 — meaning the competitive pressure to win or retain mortgage customers remains high. When ANZ moved first in early June, it was betting the market would follow. When it did not, the commercial pressure to revert was enough to produce a relatively quick reversal.
For borrowers, the practical message is that rate decisions by one bank are not necessarily a signal of where the market is heading — and that shopping around or negotiating matters, particularly when the gap between the best and worst offers is wide.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.