Westpac has cut its 3-year special fixed home loan rate to 4.99% — the first major bank to offer a mortgage rate below 5%.
The bank announced today it would drop 1-year, 18-month, 2-year, 3-year and 4-year for special and standard rates starting Friday.
The biggest drop was for 3-year special rates, falling 0.60% to 4.99%. The special rates are available to customers with a minimum of 20% equity.
Outside the 3-year rate, the other drops were between five and 10 basis points.
Westpac also planned to lower some term deposit rates between 0.05% and 0.10%.
Westpac NZ general manager of product, sustainability and marketing Sarah Hearn said it was the first time the bank had offered a rate below 5% since August 2022.
“We’re committed to helping homeowners reach their goals sooner and we’re focused on delivering value across the board.
“We know that customers take different approaches – some watch the market closely and fix for short periods, while others want certainty over a longer period.
“For those customers wanting to lock in for a longer period at great value, our new 3-year rate of 4.99% is a full 0.60% lower than the next best advertised offering by the other major banks.
“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.”
Kiwibank also cuts some rates
Kiwibank also cut some of its fixed home loan rates today, reducing rates on its 2-year and 3-year terms from today.
The state-owned bank dropped its 2-year special fixed home loan lending term by 16 basis points to 5.29% from 5.45% — the lowest equal rate with ASB and BNZ.
The 3-year special was cut by 10 basis points to 5.59%, down from the previous rate of 5.69%.
Standard rates on 2-year and 3-year fixed terms also decreased from 6.35% and 6.49% to 6.19% and 6.39% respectively.
Yesterday, ASB lowered some of its fixed home lending rates, reducing rates on 1-year, 18-month, and 2-year terms. All major banks have been lowering some fixed home loan rates in recent weeks.
The Reserve Bank will review the Official Cash Rate on February 19.