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The Red Bank rejigs its home loan offers; targets 18 month, 3 year and 5 year terms for lower conditional rates

The Red Bank rejigs its home loan offers; targets 18 month, 3 year and 5 year terms for lower conditional rates

Westpac has changed its home loan 'special' rate offers.

It has introduced a new 18 month 'special' rate of 5.75%.

It has ended its 2 year 'special' rate of 5.75%, with their offer for this term reverting to its standard 6.39%.

It has reduced its 3 year 'special' rate to 5.99%, a -20 bps drop from 6.19%.

And it has kept its 6.49% five year 'special' rate unchanged.

None of these changes give Westpac a market-leading position for any term, but they are very close with their new 18 month rate, pipped only by SBS Bank, and matching the Co-operative Bank. At this term, they have the lowest rate of any of the main banks.

The conditions for these Westpac 'specials' include requiring a minimum of 20% deposit, salary credit to a Westpac transaction account, and a Westpac credit card or specified insurance product.

Westpac also offer a "healthy cash bonus" for new lending of $100,000 or more. They don't specify the level but stand ready to match competitive offers - which bizarrely means to get the best cash bonus from Westpac you must shop around first. It is odd seeing a bank implicitly encourage that - although it is probably the reality of today's competitive mortgage market.

See all banks' carded, or advertised, home loan rates here.

The current non-rate incentive offers are here.

This is how the updated mortgage rates will compare as at 8:00 am Thursday, November 20, 2014:

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 4 yrs 5 yrs
             
5.69% 6.25% 5.75% 6.09% 6.79% 6.99%
ASB 5.70% 6.09% 5.75% 5.99% 5.99% 6.49%
5.89% 6.09% 5.75% 6.09% 6.49% 6.59%
Kiwibank 5.69%   5.75% 6.09% 6.59% 5.99%
Westpac 6.09% 5.75% 6.39% 5.99% 6.79% 6.49%
             
Co-op Bank 5.70% 5.75% 5.75% 6.09% 6.40% 6.49%
HSBC 5.39%   5.75% 5.99% 6.79% 6.99%
SBS Bank 5.59% 5.74% 5.49% 5.69%   6.19%
5.70% 5.90% 5.70% 6.20% 6.65% 6.85%

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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
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Fixed mortgage rates

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