Westpac NZ Cuts Home Loan Rate Below 5%

Westpac NZ is cutting its advertised 3-year home rate to a market-leading special 4.99% p.a. - the first major bank to offer a home loan rate below 5% in the current cycle.

The new 3-year special rate represents a 0.60% reduction on the current advertised rate and will be available to customers from Friday 7 February.

The change is one of several reductions to fixed-term home loan rates that mean, as of Wednesday afternoon, Westpac has the joint-lowest advertised 6-month, 1-year and 2-year rates and the outright lowest 3, 4, and 5-year advertised special rates among the five major banks.

The bank is also lowering some term deposit rates by between 0.05% and 0.10% p.a.

Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says this is the first time Westpac has advertised a rate starting with a '4' since August 2022.

"We're committed to helping homeowners reach their goals sooner and we're focused on delivering value across the board.

"We know that customers take different approaches - some watch the market closely and fix for short periods, while others want certainty over a longer period.

"For those customers wanting to lock in for a longer period at great value, our new 3-year rate of 4.99% is a full 0.60% lower than the next best advertised offering by the other major banks."

While falling interest rates are a welcome relief for borrowers, Ms Hearn says she is conscious that current geopolitics may be creating an uncertain landscape for some customers.

"We recognise that falling interest rates may impact term deposit customers but we're doing our best to balance our offerings across our customer base.

"We encourage people to talk to one of our experts if they have questions or concerns about any aspect of their finances."

Fixed home loan rates - Special (effective 7 February 2025)

Fixed home loan rates - Standard (effective 7 February 2025)