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Westpac NZ moves swiftly to pass on latest OCR cut.

19 Feb 2025

Westpac NZ is reducing interest rates for borrowers and savers on variable rates, following today’s OCR cut, while unveiling a range of new fixed rate specials for home loan customers.

Effective Friday 21 February, Westpac’s new 5.49% p.a. 1-year advertised special rate is the joint-best among the major banks as of 2pm Wednesday, and the lowest Westpac’s 1-year advertised rate has been since October 2022.

In addition, Westpac has made changes to longer term rates, with the best rates among the major banks across the 3, 4 and 5 year terms as of 2pm Wednesday.

Westpac is also supporting small businesses and farmers by delivering a 0.6% p.a. cut – more than today’s OCR reduction – to most variable business lending products including overdrafts. Variable consumer lending and savings products are also being cut by between 0.4% and 0.5% p.a.

Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn says the bank is working hard to support New Zealand’s economic recovery by competing hard and offering expert guidance and advice to customers.

“We’re seeing growing confidence among households and businesses about the year ahead, and today’s rate cut will give homeowners a further boost and help put more money in their back pockets. We also want to support small businesses and farmers with their growth aspirations, which is why we’ve cut most variable business lending rates by more than today’s OCR cut,” Ms Hearn says.

“We expect strong demand for our new 1-year advertised special home loan rate. Our 3-year special of 4.99% p.a. has made a real impact, and customers still have today and tomorrow to secure that rate if they’re looking for longer-term certainty on their repayments. The 3-year special home loan rate will end at the close of business on Thursday 20 February. Our new 5.39% p.a. advertised special rates across our 3, 4 and 5-year terms continue to be the lowest among the major banks as of 2pm Wednesday.

“At the same time, we know cost pressures will be weighing on some households, while our savings customers will be watching falling interest rates closely.

“We encourage anyone who’s concerned about their financial situation to get in touch.”

ENDS

Fixed home loan rates – Special (effective: 21 February 2025)

Term	New Rate	Change
6 months	5.99% p.a.	No Change
1 year	5.49% p.a.	-0.05%
18 months	5.29% p.a.	-0.05%
2 years	5.29% p.a.	No Change
3 years	5.39% p.a.	+0.40%
4 years	5.39% p.a.	-0.10%
5 years	5.39% p.a.	-0.20%

Fixed home loan rates – Standard (effective: 21 February 2025)

Term	New Rate	Change
6 months	6.59% p.a.	No change
1 year	6.09% p.a.	-0.05%
18 months	5.89% p.a.	-0.05%
2 years	5.89% p.a.	No change
3 years	5.99% p.a.	+0.40%
4 years	5.99% p.a.	-0.10%
5 years	5.99% p.a.	-0.20%

Interest rates are subject to change without notice. Westpac NZ’s lending and eligibility criteria, and terms and conditions apply. A low equity margin may apply. For more information please go to www.westpac.co.nz

Variable home loan rates (effective 24 February 2025 for new customers and 10 March 2025 for existing customers)

Product	New Rate	Change
Choices Floating	6.99% p.a.	-0.40%
Choices Offset	6.99% p.a.	-0.40%
Choices Everyday	7.09% p.a.	-0.40%

Savings rates (effective 24 February 2025)

Product	New Rate	Change
Westpac Bonus Saver/PIE – total available	2.75% p.a.	-0.50%
Notice Saver	3.35% p.a.	-0.40%
Simple Saver	1.05% p.a.	-0.40%
Business Online Saver	1.05% p.a.	-0.40%

Westpac NZ's terms and conditions and eligibility criteria apply. Fees and charges may apply. Any rates of return are subject to change without notice.

Westpac Bonus Saver PIE is offered under the Westpac Cash PIE Fund and Notice Saver is offered under the Westpac Notice Saver PIE Fund. Investments made in the Westpac Cash PIE Fund and/or the Westpac Notice Saver PIE Fund (each a "Fund” and together the "Funds") do not represent bank deposits or liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited (“Westpac NZ”) or any other member of the Westpac group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac group of companies, Trustees Executors Limited (as trustee), or any director or nominee of any of those entities guarantees the Funds’ performance, returns or repayment of capital.

Term deposit rates (effective: 21 February 2025)

Term	Interest Frequency	New Rate*	Change
30 days	At Maturity	2.50% p.a.	No Change
60 days	At Maturity	2.85% p.a.	No Change
90 days	At Maturity	4.05% p.a.	-0.15%
4 months	At Maturity	4.10% p.a.	-0.15%
5 months	At Maturity	4.45% p.a.	-0.10%
6 months	At Maturity, Monthly or Compounding	4.55% p.a.	-0.15%
8 months	At Maturity, Monthly or Compounding	4.65% p.a.	-0.10%
9 months	At Maturity, Monthly or Compounding	4.50% p.a.	-0.15%
12 months	At Maturity, Monthly or Compounding	4.40% p.a.	-0.10%
18 months	At Maturity, Monthly or Compounding	4.40% p.a.	No Change
2 years	At Maturity, Monthly or Compounding	4.40% p.a.	No Change
3 years	At Maturity, Monthly or Compounding	4.40% p.a.	No Change
4 years	At Maturity, Monthly or Compounding	4.30% p.a.	No Change
5 years	At Maturity, Monthly or Compounding	4.30% p.a.	No Change

Rates are subject to change without notice. Minimum $5,000 deposit. Rates are available for Retail and Business Banking customers holding up to $5,000,000 total deposits, either solely or jointly with Westpac NZ (including PIE investments). For rates applicable to amounts in excess of $5,000,000, please contact us. Rates are not available to Financial Institutions. Other T&Cs apply, see westpac.co.nz for details and a copy of the relevant Term Sheet. Compounding interest: For terms six months or longer, interest can be compounded quarterly.