Quick Answer: As of mid-2026, the lowest fixed rates sit around 4.49% for 6 months and 5.19-5.39% for 2-4 years, with floating rates typically higher but more flexible - fixed suits borrowers who want payment certainty, while floating suits those expecting to sell, refinance, or make lump-sum repayments soon.
Where Rates Sit Right Now
The Official Cash Rate is currently 2.25%, with the Reserve Bank expected to lift it toward 3% over the next six months. Against that backdrop, the lowest 6-month fixed rate available is around 4.49% (ASB and Kiwibank), the lowest 1-year rate is 4.65% (ANZ and ASB), 2-year rates are around 5.19% (Westpac), and 3-4 year rates sit between 5.29% and 5.39%.
Longer-term fixed rates are edging up while shorter-term rates hold near recent lows - a shift that's made fixing at least part of your loan for a shorter term more appealing to many borrowers this year.
How to Choose Between Them
Fixed rates lock in your repayment amount for a set term, giving certainty but limited flexibility - break fees can apply if you repay early or refinance mid-term. Floating rates move with the market and usually sit a little higher, but let you make extra repayments or repay the loan in full without penalty at any time.
- Choose fixed if budget certainty matters most, or you expect rates to keep rising
- Choose floating if you plan to sell, make lump-sum repayments, or want maximum flexibility
- Consider splitting your mortgage between fixed and floating portions for a mix of certainty and flexibility
4.49%
5.19%
5.29%-5.39%
Common Questions, Answered
Quick Summary
- Short-term fixed rates are currently the lowest, around 4.49-4.65%.
- Longer fixed terms are edging up as the OCR is expected to rise through 2026.
- Floating offers flexibility at a typically higher rate.
- Splitting your loan is a common way to balance both approaches.