New rate cuts to boost home loan customers
Westpac New Zealand is ringing in the new year with a competitive edge, reducing its six-month special home loan rate by 0.2% to a 5.99% annual percentage rate (APR), effective today.
This adjustment positions the bank’s offering as one of the most attractive among the major banks.
Competitive across various home loan terms
With this rate cut, Westpac NZ, which recently unveiled its GDP nowcasting model, not only offers one of the lowest six-month rates but also maintains highly competitive rates for longer terms.
It matches the lowest advertised special rates for one-, two-, and three-year terms among the five major banks and holds the distinction of having the lowest rates for four- and five-year terms.
Adjustments in term deposit rates
In conjunction with the rate reduction on home loans, Westpac NZ is also decreasing its term deposit rates by 0.1% to 0.15% per annum. This adjustment reflects the bank’s strategic approach to balance savings and loan offerings in the current economic climate.
Strategic moves amid economic fluctuations
Sarah Hearn (pictured above), Westpac NZ’s general manager of product, sustainability, and marketing, emphasised the bank’s strategy in responding to market conditions and economic uncertainties.
“We expect competition for home lending to be fierce again this year and we’re acting swiftly to ensure we keep offering great value,” Hearn said.
She also highlighted the anticipated easing of financial burdens for homeowners as they transition to new fixed rates throughout the year.
Supporting financial goals and education
Westpac NZ, which recently released its updated sustainability targets for 2027, said it was committed to supporting its customers’ financial health beyond mere banking products.
As 2025 unfolds, Hearn encourages customers to evaluate their financial strategies and goals, whether they aim to accelerate mortgage payments, save for retirement, or fund significant purchases.
The bank offers several tools, like the CashNav app, to aid customers in managing their finances and has actively educated them on improved spending and savings practices during the summer.
“We encourage people to talk to us, or to a trusted advisor, if they have questions or concerns about any aspect of their finances,” Hearn said.
