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Westpac NZ offers 6.99% 2-year home loan rate and cuts longer term rates.

23 Nov 2023

Westpac NZ is making a range of changes to its housing and term deposit rates, giving it the lowest advertised special home loan rates of the five major banks on all terms from 2 to 5 years.

The bank is cutting its popular 2-year special home loan rate to 6.99% and also reducing its special 3-to-5 year home loan rates.

It’s lifting its 1-year special rate by 4 basis points to 7.39%, while also raising its 1-year term deposit rate by 10 basis points to 6.10%.

Westpac NZ General Manager of Product, Sustainability and Marketing Sarah Hearn says the changes reflect the bank’s varying costs of funding, with falling wholesale rates over the past month balanced out by strong competition for deposits.

“We’re working hard to support borrowers and savers, and we believe we offer good value on a range of home loan terms, including those who want to lock in longer-term certainty,” Ms Hearn says.

“Our own data continues to show most customers are well-placed to manage the cost of living, which is encouraging.

“However, we know that some homeowners who are due to roll off their current rate may be facing challenges from rate increases. We encourage customers to talk to us early if they’re worried about their finances.”

Pricing changes effective Friday 24 November are detailed below.

Fixed home loan rates – Specials

Term	New Rate	Change
6 months	7.39% p.a.	+0.10%
1 year	7.39% p.a.	+0.04%
18 months	7.19% p.a.	+0.04%
2 years	6.99% p.a.	-0.10%
3 years	6.75% p.a.	-0.10%
4 years	6.69% p.a.	-0.06%
5 years	6.49% p.a.	-0.16%

*Interest rates are subject to change without notice, lending and eligibility criteria apply

Term Investments

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	4.20% p.a.	No Change
4 months	At Maturity	4.30% p.a.	No Change
5 months	At Maturity	5.00% p.a.	No Change
6 months	At Maturity, Monthly or Compounding	6.00% p.a.	No Change
8 months	At Maturity, Monthly or Compounding	6.10% p.a.	No Change
9 months	At Maturity, Monthly or Compounding	6.00% p.a.	No Change
12 months	At Maturity, Monthly or Compounding	6.10% p.a.	+0.10%
18 months	At Maturity, Monthly or Compounding	6.10% p.a.	No Change
2 years	At Maturity, Monthly or Compounding	5.90% p.a.	No Change
3 years	At Maturity, Monthly or Compounding	5.50% p.a.	No Change
4 years	At Maturity, Monthly or Compounding	5.40% p.a.	No Change
5 years	At Maturity, Monthly or Compounding	5.40% p.a.	No Change

* Rates are subject to change without notice. Rates apply up to the first $5,000,000 of deposits held either solely or jointly with Westpac, with a minimum investment of $5,000, and not available to financial institutions.

Compounding interest: For terms six months or longer, interest can be compounded quarterly.