Westpac NZ is reducing home loan rates, offering customers a special rate of 4.95% p.a. across terms 1, 2 and 3-years, effective from Thursday, 29 May.
General Manager of Product, Sustainability and Marketing, Sarah Hearn, says this makes it easy for customers to split their loans at the same attractive rate.
Westpac's new 4.95% p.a. special rate is the lowest 3-year rate offered by any of the five largest banks (based on advertised rates as at 3pm today), and is well below the average rate of 5.40% p.a. over the past 10 years.
Additionally, Westpac is cutting variable home lending rates by 0.15% p.a., meaning the rates for those customers have now dropped by over 2.00% p.a. since the start of July last year. Most variable business lending rates are being reduced, in line with the 0.25% OCR change.
"With record levels of home loans rolling off fixed rates over the next month, our new 3-year special home loan rate shows we are committed to offering compelling rates to benefit existing customers and attract new ones," Ms Hearn says.
"We've made it easier than ever with new functionality for eligible customers to move from a floating rate to a fixed rate via the Westpac One app."
"Today's OCR cut should give consumers confidence that cost pressures are continuing to ease after several years of elevated inflation and interest rates," she says.
"We're working hard to support the expected economic recovery over the second half of this year, which means offering great products, services and digital functionality, alongside competitive rates," she says.
"We also know savers are watching falling rates closely and we're here to support them. This is why we haven't passed on any of today's 0.25% OCR reduction to our Notice Saver product, which remains at 3.10% p.a."
Ms Hearn confirmed Westpac is also lowering its mortgage serviceability rate from 7.00% to 6.85%.
Fixed home loan rates - Special (effective 29 May 2025)
Term |
New Rate |
Change |
6 months |
5.49% p.a. |
-0.10% |
1 year |
4.95% p.a. |
-0.04% |
18 months |
4.95% p.a. |
-0.04% |
2 years |
4.95% p.a. |
-0.04% |
3 years |
4.95% p.a. |
-0.24% |
4 years |
5.39% p.a. |
No Change |
5 years |
5.39% p.a. |
No Change |
Fixed home loan rates - Standard (effective 29 May 2025)
Term |
New Rate |
Change |
6 months |
6.09% p.a. |
-0.10% |
1 year |
5.55% p.a. |
-0.04% |
18 months |
5.55% p.a. |
-0.04% |
2 years |
5.55% p.a. |
-0.04% |
3 years |
5.55% p.a. |
-0.24% |
4 years |
5.99% p.a. |
No Change |
5 years |
5.99% p.a. |
No Change |
Variable home loan rates (effective 3 June 2025 for new customers and 5 June 2025 for existing customers)
Product |
New Rate |
Change |
Choices Floating |
6.59% p.a. |
-0.15% |
Choices Offset |
6.59% p.a. |
-0.15% |
Choices Everyday |
6.69% p.a. |
-0.15% |
