Best home loan lenders in New Zealand for a first-home-buying couple

With a 25% deposit, two salaried incomes, and a priority of minimising the total cost of your mortgage, you're in a reasonably strong position to negotiate with New Zealand lenders.

My recommendation is to compare the major banks against at least one smaller bank and a mortgage broker's recommended alternatives. Don't automatically accept the bank where you already have your everyday accounts.

The cheapest mortgage isn't necessarily the one with the lowest advertised interest rate. You want to minimise the combined cost of:

• Interest: the biggest potential cost over the life of your loan.
• Fees: loan establishment, legal, valuation and other applicable charges.
• Cash incentives: some lenders offer contributions for new lending, which can offset your initial costs.
• Rate changes: the interest rate you'll pay when your fixed term expires and you need to refix.
• Loan structure: the balance between fixed and floating rates, and whether you can make extra repayments without penalties.

Your 25% deposit is particularly useful because it puts you above the common 20% deposit threshold used for standard owner-occupied lending. That generally gives you access to a broader range of lending options and reduces the risk of paying a low-equity margin, although each lender has its own criteria.

1. Which lenders would I recommend?

I'd start with the following five lenders. They offer different combinations of pricing, service, loan flexibility and potential cash contributions.

Lender	Why I'd compare it	What to look for
ANZ	A major bank worth including in your negotiations, with competitive advertised special rates.	Its best fixed rate, any cash contribution, and flexibility for extra repayments.
ASB	A strong benchmark for comparing the major banks, with a range of fixed and variable mortgage options.	Whether it will match a competing bank's rate and contribution.
Kiwibank	A worthwhile alternative to the Australian-owned major banks, with competitive special rates on some terms.	The total package, particularly its two-year rate and any upfront contribution.
SBS Bank	A useful smaller-bank competitor that may offer an attractive deal for your circumstances.	Whether its special rates and fees beat the major banks' offers.
The Co-operative Bank	Particularly worth investigating because its advertised rates can be competitive, including on floating lending.	Whether its fixed-rate offers and overall loan structure work out cheaper for you.

These aren't five guaranteed winners: they're the lenders I'd ask to quote first. Advertised rates can change, and the rate you qualify for may differ from the headline offer. Current New Zealand mortgage-rate comparison. staircase.co.nz

I'd also request a quote from BNZ and Westpac. Even if another bank initially advertises a lower rate, a competing offer from one of the major lenders can give you leverage to negotiate.

How the advertised rates compare right now

As a useful starting point, the published rate comparison updated on 9 October 2026 shows these special or lowest advertised rates:

Lender	1-year fixed	2-year fixed
ANZ	4.99%	5.35%
ASB	4.99%	5.35%
Kiwibank	5.15%	5.39%
BNZ	5.19%	5.35%
SBS Bank	5.19%	5.29%
The Co-operative Bank	5.19%	5.49%
TSB	5.19%	5.39%
Westpac	5.19%	5.29%

Source: Staircase's New Zealand mortgage-rate comparison. Rates are indicative, may be subject to eligibility conditions, and can change without notice. Confirm the actual offer with each lender. staircase.co.nz

My initial shortlist would be ANZ, ASB, Kiwibank and SBS Bank, with The Co-operative Bank included as a useful challenger.

However, don't choose a lender based on this table alone. A 0.10 percentage-point difference in interest rate might matter less than a substantially larger cash contribution, depending on the size of your loan and how long you keep it.

2. What matters most when comparing mortgage offers?

For your situation, I'd prioritise these four things.

A. Negotiate the interest rate

Don't assume the advertised special rate is the best the bank can offer.

Ask each lender to quote on the same loan amount and fixed term. Then tell your preferred lender that you're comparing competing offers.

For example, on a NZ$600,000 mortgage, a 0.25 percentage-point reduction in the interest rate represents approximately NZ$1,500 less interest in the first year, assuming the balance remains around NZ$600,000.

The actual saving over time depends on your outstanding balance, repayments and future interest rates.

B. Compare cash contributions

Some banks offer a cash contribution when you take out a new mortgage. This can help cover legal costs, moving expenses or other costs associated with buying your first home.

However, check the conditions carefully:

• How much will the bank contribute?
• Must you keep your mortgage with the bank for a specified period?
• How much would you have to repay if you refinance or sell early?
• Does accepting the contribution affect the interest rate you receive?

The Commerce Commission has highlighted how cash-contribution repayment conditions can make switching banks more expensive. Read the Commerce Commission's banking market study.

My advice: compare the interest-rate savings and cash contribution together rather than treating the largest upfront payment as the best deal.

C. Choose a mortgage structure that helps you repay faster

For first-home buyers, I'd investigate a standard principal-and-interest table loan, potentially split between fixed and floating portions.

A sensible starting point could be:

• Most of the loan fixed: gives you predictable repayments during the fixed term.
• A smaller floating portion: gives you more flexibility to make additional repayments without the same fixed-rate break costs.

You don't necessarily need a floating portion, though. If its higher interest rate outweighs the benefit of making extra repayments, it may cost you more.

Ask whether the bank allows additional repayments on its fixed loans without penalties, and how much you can repay before charges apply.

Sorted's guide to mortgage types explains the trade-offs between fixed, floating and split mortgages.

D. Reduce the mortgage term if you can comfortably afford it

The longer you take to repay your mortgage, the more interest you generally pay.

A 30-year term offers lower required repayments than a 25-year term, but it can result in substantially more interest over the life of the loan.

I'd compare both terms and consider a 25-year mortgage if the repayments comfortably fit your budget. Alternatively, a 30-year term with consistently higher voluntary repayments may provide useful flexibility, provided your lender permits those repayments without significant costs.

Don't sacrifice your emergency savings to pay off the mortgage faster, however. Homeownership brings unexpected expenses, and having a financial buffer matters.

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3. Should you use a mortgage broker?

Yes, I'd seriously consider using a mortgage broker alongside your own comparisons.

As first-home buyers with limited mortgage experience, you could benefit from having someone explain the offers, structure the loan and negotiate with lenders.

A good broker can:

• Compare lenders and their lending criteria.
• Negotiate interest rates and cash contributions.
• Explain fixed-rate terms, repayment restrictions and fees.
• Help you understand the application and approval process.

There are two important caveats.

First, brokers don't necessarily work with every lender. Second, they may receive different commissions from different lenders, so ask how they are paid and whether they have any conflicts of interest.

Check that your broker is appropriately licensed, and clarify whether you'll owe them a fee if you don't proceed with their recommended loan.

You can read more in Sorted's guide to shopping for a mortgage.

4. The approach I'd take in your position

Here's the process I'd follow to keep your costs down.

1. Get a mortgage broker to compare options. Ask them to include ANZ, ASB, Kiwibank, SBS Bank and The Co-operative Bank, plus any other lenders that look competitive.
2. Get at least two direct bank offers. I'd start with ANZ and ASB, or whichever banks have the most competitive rates when you're ready to apply.
3. Compare like with like. Ask each lender for the same loan amount, repayment term and fixed-rate periods.
4. Negotiate. Give your preferred lender the strongest competing offer and ask whether they can improve the rate or cash contribution.
5. Calculate the total cost. Include interest, fees, cash contributions and any restrictions on extra repayments.
6. Review the mortgage regularly. When a fixed term expires, compare the available rates instead of automatically accepting the bank's default option.

You can also use Sorted's mortgage calculator and home-buying resources to assess different repayment strategies.

5. My final recommendation

For a salaried couple with a 25% deposit, I'd start with ANZ, ASB and Kiwibank, while asking SBS Bank and The Co-operative Bank to compete for your business.

I wouldn't commit to any one lender before receiving actual offers. The best deal for you will depend on your loan size, the fixed term you choose, the bank's cash contribution and the flexibility you need.

One final consideration: don't assume you should use every dollar of your deposit. If your 25% deposit includes nearly all your savings, keeping some money aside for legal expenses, moving costs, maintenance and emergencies may be more valuable than making the deposit slightly larger.

Let me narrow this down to the best options for you

Approximately how much do you expect to borrow for your first home?

For example, NZ$400,000, NZ$600,000, NZ$800,000 or more.

With that figure, I can compare the likely cost differences between lenders and explain which mortgage offers deserve the closest attention.