Best Banks for Home Loans in New Zealand 2026
Compare rates, service, and features from ANZ, ASB, BNZ, Westpac, Kiwibank, and non-bank lenders to find your best option.
Compare All Banks NowWhich Bank is Best for Your Home Loan?
There's no single "best" bank for everyone - it depends on your situation, priorities, and what you value. Here's how NZ's major lenders compare across key criteria.
5
Major Banks
20+
Non-Bank Lenders
4.49%
Best Fixed Rate (1yr)
7.50%
Average Floating Rate
ANZ
Market Share
~30%
Best For
Large borrowers, existing customers
1-Year Fixed Rate
4.49%
Floating Rate
7.49%
Strengths
- +Market Leader: Largest bank with most resources and branch network
- +Competitive Rates: Often matches or beats competitors on rates
- +Digital Tools: Excellent mobile app and online banking
- +Package Deals: Good discounts for customers with transaction accounts and credit cards
Weaknesses
- -Service: Can feel corporate and impersonal
- -Fees: Higher account fees compared to some competitors
- -Approval Times: Can be slower due to size and processes
Best For: Borrowers wanting the security of NZ's largest bank, those with large loans ($750K+), or existing ANZ customers who can leverage package discounts.
ASB
Market Share
~20%
Best For
Customer service, first home buyers
1-Year Fixed Rate
4.49%
Floating Rate
7.54%
Strengths
- +Customer Service: Well-regarded for customer satisfaction among NZ banks
- +First Home Buyers: Excellent support and guidance for first-timers
- +Technology: Well-regarded mobile app and digital banking experience
- +Offset Accounts: One of the best offset mortgage products in NZ
Weaknesses
- -Rates: Sometimes 0.1-0.2% higher than cheapest competitors
- -Availability: Fewer branches than ANZ or Westpac
- -Investment Lending: More conservative policies for investors
Best For: First home buyers wanting hand-holding, borrowers who value exceptional customer service over the absolute lowest rate, or those wanting offset mortgage features.
BNZ
Market Share
~16%
Best For
Competitive rates, fast approvals
1-Year Fixed Rate
4.49%
Floating Rate
7.44%
Strengths
- +Competitive Rates: Often among the cheapest rates in market
- +Fast Processing: Known for quick approval times
- +Flexible Lending: More accommodating for unusual situations
- +Cashback Offers: Regular cashback promotions for new borrowers
Weaknesses
- -Service Quality: Inconsistent service across branches
- -Branch Network: Fewer branches than ANZ or Westpac
- -Account Fees: Higher transaction account fees
Best For: Rate-conscious borrowers, those needing fast approval (competitive market conditions), or borrowers with slightly unusual circumstances who need flexible lending.
Westpac
Market Share
~18%
Best For
Established customers, package deals
1-Year Fixed Rate
4.49%
Floating Rate
7.50%
Strengths
- +Branch Network: Extensive branches across NZ
- +Relationship Banking: Dedicated managers for larger loans
- +Package Deals: Strong packages for customers with multiple products
- +Investment Property: Good policies for property investors
Weaknesses
- -Rates: Often not the most competitive on rates
- -Technology: App and online banking lag behind competitors
- -Processing Times: Can be slower than other banks
Best For: Long-term Westpac customers, property investors, or borrowers who prefer traditional relationship banking with face-to-face service.
Kiwibank
Market Share
~9%
Best For
Low rates, NZ-owned option
1-Year Fixed Rate
4.49%
Floating Rate
7.39%
Strengths
- +Best Rates: Often the cheapest rates in the market
- +NZ-Owned: Only major NZ-owned bank (profits stay in NZ)
- +Low Fees: Generally lower account fees than Australian banks
- +Accessibility: Branches in PostShops nationwide
Weaknesses
- -Technology: Less sophisticated digital banking than big four
- -Lending Criteria: Can be more conservative on complex applications
- -Service: Variable service quality at PostShop locations
Best For: Rate-focused borrowers, those wanting to support NZ-owned business, or straightforward lending situations (PAYG employment, good credit, standard property).
Non-Bank Lenders in NZ
Non-bank lenders (also called "second-tier lenders") offer alternatives to traditional banks, often with more flexible lending criteria but higher rates.
Popular Non-Bank Lenders
Pepper Money
Specialist in bad credit, self-employed, and non-resident lending
Resimac
Competitive rates for straightforward lending, good for self-employed
Avanti Finance
Focus on credit-impaired borrowers and complex situations
Liberty Financial
Property investors and self-employed specialists
Bluestone
Alternative lending for non-standard situations
TSB
Regional bank with competitive rates (Taranaki/Manawatu)
When to Consider Non-Bank Lenders
- ✓Banks have declined your application
- ✓You have bad credit or past defaults
- ✓Complex self-employed income
- ✓Non-resident or recent immigrant
- ✓Unusual property type (cross-lease, leasehold)
- ✓Need very quick settlement
Downsides of Non-Bank Lenders
- -Higher interest rates (typically 1-3% more than banks)
- -Higher fees (application, valuation, legal)
- -Fewer product options and features
- -No branch network or full banking services
- -May require larger deposits (25-30%)
Strategy: Many borrowers use non-bank lenders as a stepping stone. Get approved now at higher rates, improve your credit over 12-24 months, then refinance to a mainstream bank at better rates.
How to Choose the Right Bank
1. Compare Rates (But Don't Stop There)
A 0.1% rate difference on $600,000 saves $600/year. Significant, but not worth sacrificing good service. Focus on the overall package.
2. Consider Your Situation
Self-employed? Need fast approval? Have bad credit? Want investment properties? Different banks excel in different areas. Match the bank to your needs.
3. Read the Fine Print
Check: early repayment penalties, break fees, can you make extra repayments? Ability to split loans? Portability to new properties?
4. Use a Mortgage Broker
Brokers know which banks will approve your specific situation and can access better rates than going direct. They see hundreds of applications and know bank policies inside-out.
Connect with a broker5. Don't Be Loyal to a Fault
Banking with someone for 20 years means nothing if they won't give you a competitive rate. Shop around every time you refix. Banks give best deals to new customers, not loyal ones.
Bank Comparison FAQs
Which NZ bank has the best mortgage rates?
Rates change frequently, but Kiwibank and BNZ often have the most competitive rates. However, the "best" rate depends on your situation - loan size, LVR, and whether you bundle other products. A mortgage broker can identify the best rate for your specific circumstances.
Should I use the same bank as my everyday banking?
Not necessarily. Many people use one bank for their mortgage and another for everyday banking. However, some banks offer rate discounts (0.10-0.20%) if you have your main transaction account and credit cards with them. Weigh this against rate differences.
Can I negotiate better rates with banks?
Yes! Always negotiate, especially if you have a large loan, low LVR, or strong financial position. Banks have more flexibility than advertised rates suggest. Having a competing offer from another bank strengthens your negotiating position significantly.
How often should I compare and potentially switch banks?
Review your rate every time your fixed term expires (typically every 1-3 years). If you can save 0.5% or more and there are no break fees, switching usually makes sense. Over a loan's life, you'll likely refinance 3-5 times.
Are online-only banks cheaper?
Not always. While some online-only or non-bank lenders have low rates, the major banks are highly competitive. The trade-off is often service and features versus pure rate. Evaluate based on your needs.
Find Your Best Bank Match
Compare rates and features from all major NZ banks in one place
Compare All Banks NowLast updated: March 24, 2026 | Rates and information verified with bank websites, RBNZ