Westpac has cut many of its fixed home loan rates and lowered some of its term deposit rates.
The Reserve Bank dropped the official cash rate to 5.25% earlier this month which has prompted a number of changes to mortgage rates at major banks.
Westpac's one year special rate for those with 20% equity will drop from 6.59% to 6.45% per annum and its two year special rate from 5.99% to 5.79%. It has lowered all its rates from six months to four years.
Most standard fixed rates have also seen a reduction.
Along with cuts to mortgage rates, Westpac has reduced some of its term deposit rates by between 0.05% and 0.10%. The six-month rate for deposits of $5000 or more has decreased from 5.70% to 5.65% and the one-year rate from 5.10% to 5.05%.
All changes are effective from tomorrow.
"Falling home loan rates are good news for both existing homeowners and those looking to get on the ladder," Westpac NZ general manager of product, sustainability and marketing Sarah Hearn said.
"These changes mean our popular 1 year advertised special home loan rate has fallen by 0.69% p.a. over the past two months, delivering meaningful cost savings.
"At the same time, we know term deposit and savings customers will be watching falling interest rates closely."
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