ANZ joins big four in floating rate hike
New Zealand's largest bank lifts floating and business rates as three rivals follow suit
By Mina Martin
14 Jul 2026
ANZ has become the latest — and largest — New Zealand bank to lift its floating home loan rates, following the Reserve Bank's decision to raise the official cash rate by 25 basis points to 2.5% on 8 July, the first increase in more than three years.
ANZ's floating home loan rate climbs from 5.79% to 6.04%, effective for new loans from 15 July and existing borrowers from 29 July, while its flexible home loan rate rises from 5.9% to 6.15% from 29 July. Business floating base rates and the Serious Saver rate will also lift by 0.25%.
The move brings ANZ into line with three rivals that had already acted in the days beforehand, each lifting floating rates by the same 0.25% margin.
ASB's housing variable rate rose to 6.04% and BNZ's standard variable rate climbed to 6.09%, though BNZ notably left its fixed rates unchanged. Westpac applied the same increase across its floating home and business loan rates.
Fixed-rate borrowers largely shielded for now
ANZ NZ managing director for personal banking Grant Knuckey noted that the bank's floating book represents only a small share of its overall lending, with roughly 91% of ANZ home loans currently on fixed rates.
In a media release, Knuckey pointed to lingering uncertainty offshore as a factor behind the Reserve Bank's move, saying "the impacts from the conflict in the Middle East are still uncertain and we could still see some pressure on inflation on that score," adding that "the New Zealand dollar is also weaker than expected, raising import costs."
He said borrowers are increasingly favouring the certainty of fixed terms, noting that "we've seen a higher proportion of customers choosing to fix their loans at the moment." Around 85% of ANZ's fixed home loans currently sit below 5%, reflecting the benefit of cuts made earlier in the easing cycle before rates began climbing again.
Borrowing capacity untouched — for now
Despite the floating rate rises, the serviceability test rates banks use to assess borrowing capacity haven't moved. ANZ, ASB, BNZ, Kiwibank and Westpac have all confirmed their test rates remain unchanged following the OCR decision, sitting between 6.85% and 7.1% depending on the lender.
