Westpac has cut its fixed mortgage rates substantially, undercutting some of Kiwibank's reductions yesterday.
Westpac now has the lowest fixed mortgage rates for a 1 year term.
Like Kiwibank, its heaviest cut is for a four year term, where a reduction 45 bps has been made. The new Westpac four year rate is 6.85% although that rate is still above Kiwibank's offering for that term of 6.79%.
Westpac has been most aggresive in its pricing for a one year term, cutting its rate to 5.59% from 5.95% which puts it under Kiwibank's 5.65% rate.
It has also priced its six month fixed rate at 5.59%, although that is not as low as HSBC's Premier rate of 5.49%.
Other Westpac changes are:
- 18 months becomes 5.89%, a reduction of 31 bps
- 2 years becomes 5.89%, a reduction of 41 bps
- 3 years becomes 6.45%, a reduction of 25 bps, and
- 5 years becomes 7.25%, a reduction of 35 bps.
This is the second bank to lower fixed mortgage rates this week, and probably signals a general round of reductions from other banks who most likely will move early next week.
You can find all current mortgage rates here »