Westpac has announced further cuts to its mortgage rates, as other New Zealand banks do the same ahead of the Reserve Bank’s official cash rate (OCR) review next week.
The market has been trending down with rates for home loans dropping in recent months.
As of tomorrow, Westpac's fixed special and standard home loan rates will be cut.
The new rates will be 6.99% for six months (down 0.06%), 6.49% for 18 months (down 0.16%), 6.19% for two years (down 0.30%), and 5.9% for three and four years (down 0.30% and 0.20%, respectively).
Standard fixed home loan rates will also drop tomorrow.
A six-month fixed sits at 7.5% (down 0.06%), 7.09% for 18 months (down 0.16%), 6.79% for two years (down 0.30%), and 6.59% for three and four years (down 0.30% and 0.20% respectively).
Westpac will also lower some of its term deposit rates starting tomorrow.
“Wholesale rates have fallen over the last month, and we’ve been monitoring developments closely and passing those lower rates onto customers,” Westpac NZ general manager of product, sustainability and marketing Sarah Hearn said, in a statement.
“Falling home loan rates are good news for both existing homeowners and those looking to get onto the ladder.”
“At the same time, we know some savings customers will be watching falling interest rates closely. We strongly encourage customers, whether borrowers or savers, to contact their bank if they have any concerns about their finances.
“The sooner we know about any issues, the sooner we can help.”
The Westpac cuts followed those made by ASB, BNZ and Kiwibank on Tuesday.
Recent Stats NZ figures showed the annual rate of inflation had fallen to its lowest level in three years, with only a 3.3% rise in the 12 months to the June quarter — close to the Reserve Bank's 1-3% target range.
Bank economists were now predicting a cut in the OCR this year.
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