Westpac NZ has cut some of its fixed home loan interest rates, effective tomorrow.
The bank’s three-year and four-year special fixed home loan rates will be reduced by 20 basis points to 5.29% and 5.39% respectively.
Its five-year special rate will be reduced by 30 basis points to 5.49%.
The bank will also reduce its standard three-year and four-year rates by 20 basis points to 5.89% and 5.99%, respectively.
Its five-year standard rate will be reduced by 30 basis points to 6.09%.
Westpac NZ managing director of product in sustainability and marketing, Sarah Hearn, said: “Positive geopolitical developments in the last few weeks have brought our longer-term funding costs down.
“We’re moving quickly to pass savings on to borrowers.
“These changes may be particularly appealing for customers given the OCR is expected to increase over the coming year."
The Reserve Bank held the Official Cash Rate at 2.25% in its most recent review on May 28 but signalled interest rate hikes were "very likely" ahead. The next OCR review will be announced by the Reserve Bank on July 8.
“This is about providing greater options and value for homeowners," Hearn added. "While many still prefer the flexibility of fixing for shorter terms, we know that some like the idea of locking in part or all of their lending for longer, especially in times of uncertainty.”
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