Latest reduction makes it competitive among Aussie-owned banks, but not vs Kiwi-owned banks

Westpac has announced a one year mortgage Special rate of 5.09%.

It is effective Tuesday, April 30, 2013.

It only applies for loans with an LVR of 80% or less.

The new rate makes it the most competitive for a one year term among the big four Aussie-owned banks, but still above almost all other locally-owned banks.

Westpac's one year standard fixed rate remains 5.19% so this Special grants a discount of 10 bps when the LVR limit can be achieved.

No other Westpac rates have changed.

No other special conditions have been advised for any of their mortgage rate offers.

These latest reductions follow changes made late last the week by SBS/HBS.

See all banks' advertised home loan rates here.

This positions the Westpac's rates among the New Zealand banks as follows:

  1 yr 2 yrs 3 yrs 4 yrs 5 yrs
ANZ 5.19% 5.45% 5.80% 6.10% 6.30%
ASB 5.19% 5.45% 5.75% 5.95% 6.25%
BNZ 5.25% 5.40% 5.80% 6.10% 6.30%
Kiwibank 4.99% 5.25% 5.65% 5.99% 5.99%
Westpac 5.09% 5.40% 5.90% 6.15% 6.25%
Co-op Bank 4.99% 5.35% 5.75% 5.99%  
HSBC Premier 4.99% 4.99% 4.99% 5.50% 5.75%
SBS / HBS 4.99% 4.99% 5.65%   5.99%
TSB 5.25% 5.30% 5.75% 6.10% 6.30%

TSB Bank still has a lower rate Special 15 month offer of 4.95%.

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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DC: What your take on this?
Why is Westapc, or the other OZ banks unable to offer the lowest carded rate. The two banking market pools (NZ and OZ), could they indicate dominant pricing by the Ozzies... given their approx. collective 85% share of NZ mort market?
Are we correct in thinking the cost of funds for the OZ would be lower than that of the NZ banks?

Unable no chance, they will remain sticky as it would erode earnings to offer it to the entire loan book, unless they start to lose market share they will not move, easier to offer special rates to quailty customers on a case to case basis that never see the media. I know aussie banks that have offered fixed over the entire yield cuve below 5% ...except for the five year rate.

Lower. Keep going lower. 
Interesting that Westpac Australia Floating rate is 5.65%  lower than Westpac NZ at 5.74 & 5.75  -  even though the Australia OCR is higher than NZ at 3.0
Westpac Aus"
1yr = 5.44
2yr = 5.49
3 yr = 5.49    lower than NZ 3yr
And they offer 7 & 10 year fixes at 7.5%  -  arrangements you cant get in NZ.

BNZ offers a 7 year mortgage at 6.99% carded.

So have you actually considered making any money Mr Belt? Or is your whole existence based on what you can borrow?

Ha ha.. ouch MoaMan.    well, i work pretty hard & make a good salary - + wife works, so household income is healthy.  Borrowings fairly modest,  live below income level. 
Just speaking for average kiwi families in the mortgagebelt, where costs are not easily contained with school fees, braces etc etc.   Borrowing is a critical expense .... & you're right, too much debt is a drag.