Westpac NZ Cuts All Special Home Loan Rates Below 5% P.a

Westpac NZ has become the first of the five largest banks in the current decreasing rate cycle to offer sub-5% p.a. advertised special home loan rates on all terms from 6 months to 5 years.

Effective Friday, Westpac is cutting all its advertised home loan rates by between 0.10% and 0.40% p.a., including a new 1-year special rate of 4.49% p.a. As of Thursday afternoon, it offers the joint or outright lowest rate on all terms from 1 to 5 years.

Westpac is also cutting term deposit rates by 0.05% to 0.20% p.a. across all terms.

Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says the bank is continually looking for ways to pass on cost reductions 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," Ms Hearn says.

"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.

"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."

Ms Hearn says the bank is also aware that savings customers are watching falling interest rates closely, and has options to support them.

"In particular, our 32-day Notice Saver of 3.00% p.a. offers great value in the current environment.

"Whether borrowing or saving, we encourage customers to talk to us about their options and what might work best for them."

Fixed Home Loan rates - Specials (effective 3 October 2025)

Fixed Home Loan rates - Standard (effective 3 October 2025)