Banks move to lower mortgage rates post-OCR
Westpac New Zealand and Kiwibank are among the first major lenders to announce rate changes in response to today’s official cash rate (OCR) cut by the Reserve Bank of New Zealand, moving swiftly to pass on the full 25 basis point reduction to borrowers.
Westpac NZ confirmed it will lower its variable home loan rates by 0.25%, effective from Monday 14 April for new customers and Monday 21 April for existing customers.
The choices floating and choices offset home loan rates will drop to 6.74% p.a., while the choices everyday revolving rate will reduce to 6.84% p.a. Most variable business loan rates will also decrease by 0.25%.
“We’re helping put more money in households’ back pockets and encouraging businesses to grow as the economy picks up,” said Sarah Hearn, Westpac NZ general manager of product, sustainability and marketing.
She noted the bank has now cut some variable business lending rates by 2.10% p.a. over the course of the OCR easing cycle—slightly more than the 2.00% reduction in the OCR itself.
To further support borrowers, Westpac will also reduce its mortgage serviceability rate from 7.25% to 7.00%.
Kiwibank also announced it will reduce its variable home loan and business lending rates by 0.25%. New rates take effect from April 14 for new lending and April 28 for existing customers. The standard variable and offset variable home loans will fall from 6.75% to 6.50%, while revolving loans will drop to 6.55%.
On the deposit side, both banks are lowering savings rates. Kiwibank’s 90-day notice saver rate will decrease from 3.60% to 3.35%, and Westpac will adjust select products including bonus saver and notice saver accounts accordingly, though savers are encouraged to consult the banks directly for product-specific details.
Despite global economic uncertainty, both lenders say the rate reductions are designed to reinforce confidence and support the economic recovery expected in the second half of the year.
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