Westpac cuts home loan rates

Thursday, 11 July 2024

Westpac NZ has dropped its housing and term deposit rates on its six, 12 and 18 month home loan terms.

The decreases, which would come into affect on July 12, included a 25 basis point drop on the 12 month rate to 6.89% p.a.

The 6 month special dropped 0.19% to 7.05% p.a, one year dropped 25 basis points to 6.89% p.a and eighteen months dropped by 10 basis points to 6.79%.

Fixed home loan rates - standard dropped 19 basis points for 6 months to 7.65% p.a, one year dropped 25 basis points to 7.49% and eighteen months dropped 10 basis points to 7.39% p.a.

It had also decreased a range of term deposit rates by between 5 and 10 basis points.

The move came from the bank after the Reserve Bank’s decision to leave the official cash rate unchanged at 5.5%, on Wednesday.

Westpac NZ General Manager of product, sustainability and marketing Sarah Hearn says the bank continues to focus on providing value to customers while responding to changes in wholesale rates.

“We’re at a unique stage of the cycle where some customers may be looking to re-fix at lower rates from recent highs.

“We do also acknowledge that some customers may be still re-fixing their loans from the historically low rates we have seen over recent years and may still be concerned about their increasing costs.”

Hearn said Westpac NZ data showed most customers were “coping well” with higher living costs but the bank continued to proactively call home loan customers who may be facing into financial difficulty to ensure they were well supported and understand their options.