One of New Zealand’s largest banks, Westpac, has reduced its home loan rates for the second time in three weeks. The changes come after the latest data showed a dip in the inflation rate.
Westpac has the joint-lowest advertised special rates of the five major banks on the popular 12-month and 18-month terms and the outright lowest on the three- and four-year terms. The bank has reduced its advertised special home loan rates across all terms by 0.1% and 0.4% since the start of July.
The standard rate for a one-year fixed-term home loan would be reduced by four basis points from 7.49% to 7.45% per annum, while the special rate would be 6.85% per annum. A 26 basis point reduction will cut the standard rate for a two-year fixed-term home loan with the bank from 7.35% to 7.09% per annum, with the special rate being 6.49% per annum. The bank has also decreased the range of term deposit rates by between 0.1% and 0.3%.
Westpac New Zealand product and marketing general manager Sarah Hearn said wholesale rates have fallen, and the bank is passing that on to customers.
She said some homeowners still prefer the option of locking in more certainty with a longer rate, and the bank is pleased to offer a 5-year advertised special rate below 6%. The changes will be effective tomorrow.
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