Westpac NZ sets new benchmark in home loan rates
Westpac NZ has reduced its three-year home loan rate to 4.99% per annum, making it the first major bank in this cycle to introduce a rate below 5%.
This new rate, which reflects a significant reduction of 0.6% from its previous rate, will become effective for customers starting Friday.
Comprehensive rate reductions across the board
This adjustment is part of a broader initiative by Westpac to revise its fixed-term home loan rates, ensuring that as of Wednesday afternoon, it offers the most competitive rates among the major banks.
This includes having the joint-lowest advertised rates for six-month, one-year, and two-year terms, as well as the lowest rates for three, four, and five-year terms.
Note: Interest rates are subject to change without notice. Westpac NZ’s lending and eligibility criteria, and terms and conditions apply. A low equity margin may apply. For more information, visit the Westpac NZ website.
A strategic move to aid homeowners
Sarah Hearn (pictured above), Westpac NZ’s general manager of product, sustainability, and marketing, highlighted the significance of the rate cut.
“This is the first time Westpac has advertised a rate starting with a ‘4’ since August 2022,” she said. “We’re committed to helping homeowners reach their goals sooner and we’re focused on delivering value across the board.”
Hearn stressed the flexibility the new rate offers to customers, catering to those who prefer short-term fixes due to market volatility, as well as those seeking long-term certainty.
“For those customers wanting to lock in for a longer period at great value, our new three-year rate of 4.99% is a full 0.6% lower than the next best advertised offering by the other major banks.”
Adjustments to term deposit rates
In conjunction with the rate cuts on home loans, Westpac NZ is also modifying some of its term deposit rates, with decreases ranging from 0.05% to 0.1% per annum. These changes are part of the bank’s strategy to maintain a balanced approach to both saving and borrowing offerings to its customers.
Balancing customer impact amidst global uncertainties
While the reduction in interest rates comes as good news for borrowers, Hearn acknowledged the complexities of the current global political landscape and its potential impact on customers.
“We recognise that falling interest rates may impact term deposit customers but we’re doing our best to balance our offerings across our customer base,” Hearn said.
Westpac NZ encourages its customers to engage with their financial experts to discuss any concerns or queries regarding their financial strategies in light of these new rates.
