Westpac has become the second bank to cut its variable mortgage rate this week, announcing a cut of 0.66% from 8.15% to 7.49%, effective Tuesday January 20, 2009 for new customers. It will become effective for existing customers as soon as the disclosure notifications are completed in about 3 weeks. They have also cut their 4 and 5 year fixed rates from 7.10% to 6.99%, matching BNZ who moved these rates down earlier in the week. Westpac last cut its fixed rates on Friday, January 9, 2009. ASB has also trimmed its fixed rates for terms 18 months through 5 years, pricing all these at 6.95%. We are expecting more cuts from other banks soon, as wholesale rates continue to soften in anticipation of another steep cut in the OCR by the RBNZ on January 29, 2009.
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