Westpac announced on Tuesday it would lower its one year, 18 month, and two year mortgage rates, effective from Wednesday morning. The one year rate will be reduced by 30 basis points (bps) to 5.40%; the 18 month rate by 21 bps to 5.89%; and the two year rate by 10 bps to 6.25%.

See all the rates on our mortgage rates page.

Two weeks ago, following the 50 basis point cut in the Official Cash Rate by the Reserve Bank, Westpac cut its six month mortgage rate by 40 bps to 5.39%.

Westpac reported last week that its net interest margins had increased to 225 basis points in the six months to March 31 from 216 basis points in the six months to the end of September, meaning it may have had a bit more room to cut rates than other banks in New Zealand.

As of yet, no bank has cut a variable mortgage rate following the OCR cut. Last Thursday, ANZ National cut its six month rate by 34 bps to 5.45%, and its one year rate by 29 bps to 5.50%.

TSB announced on Tuesday morning it was cutting its six month mortgage rate by 35 bps to 5.64%, and its one year rate by 9 bps to 5.70%. SBS also cut six month and one year rates by 29 bps to 5.50% and 7 bps to 5.70%, respectively.

Meanwhile, building society CBS Canterbury increased its two and three year mortgage rates by 15 bps to 6.40% and 6.95%, respectively.