Westpac NZ is giving Kiwis a helping hand with their 2021 home ownership goals by offering its lowest ever interest rate of 2.29%pa.
This is the lowest advertised rate by any of the major banks. The 'special' rate is available on a one-year fixed term for customers with 20% equity who are purchasing an owner-occupier home.
Westpac NZ General Manager of Consumer Banking and Wealth Gina Dellabarca says the bank wants to help home buyers act on their New Year's resolutions.
"We know property ownership has probably been a hot topic for many Kiwi families over the holiday period, so whether you're looking to buy your dream home in 2021 or just pay off your mortgage a bit faster, this special rate could help you get there," Ms Dellabarca says.
"Two years ago the same special home loan rate over the same term was 4.15%. It would have cost $1,119 a fortnight to service a $500,000 mortgage over 30 years. Now, the lower interest rate means the same repayment would be $885 a fortnight - a saving of $6084 over a year."
Ms Dellabarca says the one-year term is currently the bank's most popular fixed rate.
"We especially look forward to talking to first home buyers about how we can support them to reach their home ownership goals and this rate can certainly help them. We assisted first home buyers into more than 5,300 new homes in the 12 months to September 2020, a 7% increase on the previous year with many accessing their Kiwisaver first home-buyer withdrawal option to help them with their deposit.
"Existing mortgage customers who are due to renew their loan will also be able to take advantage of the new rate. It will give them the flexibility of moving to lower repayments or staying with their current repayments which will shorten the life of their loan.
"We're keen to talk to both existing and new customers about this exciting new rate through our mobile mortgage team or our in-branch or contact centre banking specialists."
The new 2.29% interest rate represents a cut of 20bps and is effective today.
- Special fixed rate eligibility criteria: Minimum of 20% equity, plus salary credit to a Westpac transaction account, to be issued prior to drawdown date. These special fixed interest rates cannot be used in conjunction with any other Westpac home loan offers or discount packages, including previously negotiated offers, legal fee contributions or the Westpac Choices Home Loan with Airpoints™. These special fixed interest rates do not apply to loans for business or investment purposes.
- Westpac NZ is also reducing the standard one-year home loan rate by 20bps to 2.89%.
- Westpac NZ is also reducing the total available interest on its Bonus Saver by 5bps to 0.20% and the interest on it Notice Saver by 10bps to 0.40%.
