Westpac has cut its six-month to two-year advertised, or carded, fixed-term home loan interest rates by up to 34 basis points, effective tomorrow. However, none of the new rates are market leading.
Westpac is cutting its six-month rate by 34 basis points to 5.25% from 5.59%, its one-year by 20 basis points to 5.25% from 5.45%, its 18-month rate by 25 basis points to 5.40% from 5.65%, and its two-year rate by five basis points to 5.40% from 5.45%. The cuts come after falls in swap rates overnight.
All of SBS Bank, sister banks ANZ and National, Kiwibank and HSBC have lower advertised six-month rates than Westpac, although some are conditional. ANZ, National, the Co-operative Bank and Kiwibank all have lower advertised one-year rates, although the ANZ and National ones are conditional on the borrower having 20% equity in the property, and Kiwibank's on 30%. BNZ has the lowest advertised 18-month rate at 5.25%, and Kiwibank has a 4.99% two-year rate although, again, it's conditional on 30% equity in the borrower's property.
The Westpac cuts follow fixed-term cuts in recent days by ASB, ANZ and National, HSBC and Kiwibank as spring, traditionally a busy time in the residential property market, gets under way. However, no banks have cut their advertised floating, or variable, mortgage rates, with most banks having these between 5.65% and 5.75%. In fact, Westpac recently increased its main floating rate by 15 basis points to 5.75%.
See all bank advertised mortgage rates here.
Gai McGrath, Westpac’s general manager for retail, said today the cuts came with "more and more" customers looking for longer-term certainty, with Westpac wanting to provide flexibility and choice.
“Over the last few months customers have started to opt for longer-term certainty and we want to ensure that across all terms we are able to offer competitive rates that suit their individual requirements,” McGrath said.
“Our rates represent real value and provide homeowners with options and flexibility in how they want to structure their lending so it meets their needs and circumstances.”
Westpac's latest cuts come after it recently dropped both its four and five-year fixed-term mortgage rates to 5.99%.
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12 Comments
It's time for the floating interest rate to step down. Westpac says that borrowers are looking for longer term certainty. Some are of course. But also is it that the lower rates on fixed are drawing them in - when the floating rate is being kept artificially high.
The advertised floating rate is too high if they can discount so readily for some . IMHO
I have asked both nicely and fiercely MB but an not able to shift Westpac under 5.50 on floating. Fixed doesn't work for me as I am reducing debt massively each month. Perhaps I am not a valued customer at Westpac any more because I am moving out of being a borrower. That can work both ways as they will see.
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