Westpac NZ Cuts Popular Short Term Home Loan Rates

Westpac NZ is cutting its 6, 12 and 18-month advertised special home loan rates by 0.10% to 0.20% p.a., giving it the joint-lowest advertised rates on these terms among the five major banks as of Thursday afternoon.

Westpac's new 12-month advertised special rate of 4.79% p.a. is the bank's lowest rate on any term since June 2022.

Alongside this change, Westpac is also cutting some term deposit rates between the 5-month and 3-year terms. All changes are effective Friday 15 August.

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.

"Our reduced shorter-term rates offer great value for customers looking to lock in for a short term, and for those looking for longer-term certainty on repayments, we continue to have the lowest or joint-lowest 3-to-5 year advertised special rates of the five biggest banks," Ms Hearn says.

"We know many households are still dealing with high living costs, but we expect these pressures to ease as more customers continue to roll on to lower rates over the rest of this year.

"We're also hearing from savings customers that they're watching falling rates closely. Westpac has absorbed some of these rate reductions over the past year. For example, our 12-month advertised home loan rates have fallen by 2.06% p.a. in the past year, compared to 1.80% p.a. for our advertised 12-month term deposit rate.

"We also have a 3.00% p.a. rate on our 32-day Notice Saver offering, for customers who don't need immediate access to their savings.

"Our data continues to show customers managing the cost of living better than expected, but we encourage anyone who's worried about their finances to talk to their bank."

Fixed Home Loan rates - Special (effective 15 August 2025)

Fixed Home Loan rates - Standard (effective 15 August 2025)