Westpac NZ is cutting most of its variable lending rates and a key fixed home loan rate following today's OCR cut, just days after becoming the first bank to offer sub-5% p.a. advertised fixed special home loan rates on all terms from 6 months to 5 years.
Effective Friday 10 October, Westpac's advertised 2-year special fixed home loan rate will reduce from 4.65% p.a. to 4.49% p.a., the outright lowest of the five biggest banks on that term as of Wednesday afternoon.
Effective Monday 13 October for new customers and Thursday 16 October for existing customers, Westpac is cutting variable home loan rates by 0.30% p.a., while also looking after business customers by cutting most variable business lending rates by 0.50% p.a.
Westpac is also supporting savers by continuing to hold its 32-day Notice Saver rate unchanged at 3.00% p.a. Other variable savings rates are reducing by between 0.15% and 0.50% p.a.
The move follows last week's announcement that Westpac was cutting all its fixed lending home loan rates, offering a new 1-year advertised special home loan rate of 4.49% p.a., and the joint or outright lowest rates on all terms from 1 to 5 years. Nearly 90% of Westpac's home lending book is on fixed rates.
Westpac NZ Managing Director of Product, Sustainability and Marketing, Sarah Hearn, says lower interest rates are increasingly flowing through to households' bottom lines.
"Our popular one-year advertised special home loan rate has fallen by 1.80% p.a. over the past 12 months," Ms Hearn says.
"As a result, a customer with a $300,000 mortgage on a 15-year term would now be spending approximately $285 less per month on repayments for a 1-year fixed rate term, compared to the same time last year.
"We also know savers are watching falling rates closely, and we continue to offer one of the leading savings rates in the market on our 32-day Notice Saver product, at 3.00% p.a.
"While there's still economic uncertainty out there, falling lending rates should continue to give homeowners and businesses greater confidence about the year ahead. We're here to help them grow by offering great products, services and digital functionality, as well as competitive rates."
