Sub 5% mortgage rates vanishing

Westpac gives up its market-leading one year fixed rate position by withdrawing its 4.99% special

10th Sep 12, 6:05pm by David Chaston

CORRECTED:
Westpac has ended its market leading 4.99% one year fixed rate mortgage Special. (This was a special rate that only applied to <80% LVR lending.)

The lowest one year fixed rate is now offered by BNZ, Kiwibank, and SBS/HBS at 5.25%. SBS/HBS still offer a 4.99% rate for a six month fixed term.

Westpac has also lowered rates for four of its other fixed rate terms.

The Westpac one and two year standard fixed rate each fall 4 bps to 5.45% ~~4.45%~~ from 5.49% ~~4.49%~~.

Its four year fixed rate is reduced by 15 bps to 6.20% from 6.35%.

Its five year fixed rate has been dropped 10 bps to 6.60% from 6.70%

All other home loan rates from Westpac are unchanged.

These new rates are effective from Tuesday, September 11, 2012.

A comprehensive and up-to-date listing of all mortgage rates is here »

-------------------------------------------------------
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 »
-------------------------------------------------------

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

8 Comments

by MortgageBelt | 10th Sep 12, 9:34pm 1347269686

Sign me up for the 2 year rate please!!

"The Westpac one and two year standard fixed rate each fall 4 bps to 4.45% from 4.49%".

OK, well the 4.99 1 yr was a little temporary tempter rate to test the market & try to hook some floaters & new customers. However, we are still on a downward trend generally.

Pity that the term "Floating" is now being used unethically since wholesale etc rates have been declining but the "Floating" rates are "Fixed" now. Because the banks want you back on fixed (because that's where they can keep you locked-in & where they can charge you special break fees for having the audacity to sell your house, move or refinance). Now where are the 15 year fixed rates (as in USA & UK). We think our rates are low - but we are the 2nd highest in the Western world.

by cam | 11th Sep 12, 9:13am 1347311616

Yeah that 2 year rate looks good. lol

That typo nearly had me ringing the bank and coming off my floating rate

by boofta | 11th Sep 12, 10:55am 1347317754

The Banks will try all their tricks to persuade the masses that mortgage rates have plateaued and will not reduce any further, when in reality the tumultuous state of the world financials points to the exact opposite. Rates will continue to hold at their record low levels, and possibly reduce further, for those willing to sit and wait .

by boofta | 11th Sep 12, 11:09am 1347318542

Yup indeed. Unfortunately the banks rely on peoples ignorance to help them post massive profits year after year, when in fact by understanding how their mortgage works, the majority could slash thousands off their mortgage by either re-negotiating with their bank, or going to another lending Institution. Time and time again I have seen this repeated, where aquaintances arent prepared to do anything, because of how their mortgage is structured, and what they are paying, where "they are coping" In other words its too hard.

by Father Ted | 11th Sep 12, 8:48pm 1347353333

You do realise that the level of mortgage rates doesn't matter to the banks. They earn a margin regardless of the level of rate a customer takes out.

by boofta | 12th Sep 12, 7:54am 1347393281

Father Ted - Wake me up. What a ludicrous thing to say. I will leave it there.

by Father Ted | 12th Sep 12, 10:09pm 1347444570

That's OK, I'll explain to you how it works.

You take a fixed rate loan at say 4.99% for 1 year. The bank goes out and hedges that loan through the swap market (pay fixed), thereby locking in the margin today for the life of the loan.

It doesn't matter to the bank where the level of rates sit. They are more concerned with the difference between swap rates and the mortgage rate.

by boofta | 13th Sep 12, 8:26am 1347481568

C'mon Father Ted - Its all about their borrowing power and what they pay fto service these loans. Fixed is finite where floating isnt and will thus ultimately cost the banks more to borrow.

cha cha