Westpac NZ has become the first of New Zealand’s five largest banks in the current falling rate cycle to offer sub-5% advertised special home loan rates on all fixed terms from 6 months to 5 years.
From Friday 3rd October, Westpac is cutting all its advertised special home loan rates by between 0.10% and 0.40% per annum, including a new 1-year special rate of 4.49% p.a. As of Thursday afternoon, the bank offered the joint or outright lowest rate on all terms from 1 to 5 years among the major banks. Term deposit rates are also being reduced by 0.05% to 0.20% p.a. across all terms.
Sarah Hearn, general manager of product, sustainability and marketing at Westpac NZ, said the bank was committed to passing on savings to homeowners. “Today’s cuts mean our one-year advertised special home loan rate has fallen by 2.65% p.a. over the last 15 months,” she said. “We’ve also made significant cuts to our longer term rates, reducing our 5-year special to 4.99% p.a. Splitting between shorter and longer terms could be an attractive option for homeowners looking for greater certainty and some protection against potential future rate rises.”
Hearn said the reductions reflected ongoing competition in the market. “It’s an extremely competitive market out there and we continue to fight hard to win business and pass on lower interest rates to our customers,” she said.
She added that the bank remained mindful of savers monitoring the downward trend in deposit returns. “In particular, our 32-day Notice Saver of 3.00% p.a. offers great value in the current environment,” Hearn said. “Whether borrowing or saving, we encourage customers to talk to us about their options and what might work best for them.”
The new rates reinforce Westpac’s position as one of the most competitive lenders in New Zealand’s mortgage market, with rate adjustments reflecting both lower wholesale funding costs and a focus on supporting customers through the current easing cycle.