Westpac NZ Backs Homeowners, Savers After OCR Cut

Westpac NZ is cutting a range of its lending rates, including introducing a new special rate of 4.75% p.a. on the popular 1-year, 18-month and 2-year terms - the outright-lowest rates on these terms among the five biggest banks as of 4pm Wednesday.

Westpac is also decreasing its 3-year and 4-year special home loan rates, effective Friday 22 August.

Effective Monday 25 August for new customers and Thursday 28 August for existing customers, Westpac is also cutting variable home loan rates by 0.20% p.a., and most variable business lending rates by 0.20% p.a.

The rate on the 32-day Notice Saver is remaining unchanged at 3.00% p.a. while other savings rates and several Term Investment rates are being reduced.

Westpac NZ Managing Director of Product, Sustainability and Marketing, Sarah Hearn, says the bank is working hard to support both borrowers and savers.

"We know cost pressures continue to weigh on many households and businesses, and we're acting swiftly to pass on lower rates for borrowers," Ms Hearn says.

"Our consistent offer of 4.75% p.a. across the 1-year, 18-month and 2-year home loan terms will appeal to customers looking to split their loans across different terms, given the changing outlook for the OCR.

"We also know savers are watching falling rates closely. By not passing on any of today's 0.25% rate cut on our Notice Saver product, we're keeping the rate at 3.00% p.a., which we believe offers great value for customers who don't need on-call access to their savings.

"While we know families and businesses are still feeling the effects of high living costs and economic uncertainty, we expect cost pressures to ease over the rest of the year. We're here to support New Zealanders to grow by offering great products, services and digital functionality, as well as competitive rates."

Fixed Home Loan rates - Special (effective 22 August 2025)

Fixed Home Loan rates - Standard (effective 22 August 2025)