Westpac NZ is cutting its 6-month advertised fixed home loan rate, while raising some longer-term home loan and term deposit rates, in response to recent changes to funding costs.
Effective Monday 2 February, Westpac's fixed advertised 6-month special rate will reduce by 0.20% to 4.49% p.a. - the lowest of the five biggest banks as of 3pm Thursday. Its popular one-year fixed advertised special rate is unchanged at 4.49% p.a.
Other advertised fixed home loan rates from 18 months to 5 years will rise by between 0.10% and 0.20% p.a.
Westpac is making broadly similar upward moves to support savings customers, with term deposit rates rising by 0.10% to 0.25% p.a. across a range of terms from 8 months to 5 years, effective Monday.
Westpac NZ Managing Director of Product, Sustainability and Marketing, Sarah Hearn, says wholesale interest rates continue to rise, which has driven up the cost of providing fixed home lending on longer terms.
"Two-year wholesale rates are more than 0.5% p.a. higher than they were in late November. In that time we've increased our two-year fixed home loan rate by 0.44% p.a," Ms Hearn says.
"We're absorbing some of the cost of those rate increases within our business, while continuing to offer some of the best term deposit rates among the big five banks on longer terms.
"Our popular 6-and-12 month advertised home loan rates remain highly competitive and offer great value for homeowners looking for more flexibility over the coming year.
"We know interest rates are a hot topic among Kiwi homeowners at the moment. We're here to help and we encourage customers to talk to us for guidance on how they can pay off their home loan faster.
