Westpac has made a mortgage rate change, announcing a one year home loan 'special'.
Their new rate is 5.95%, down -14 bps from 6.09% which is their standard rate.
To be eligible for this rate a minimum of 20% equity is needed, and you must commit to having your salary credited to a Westpac transaction account. Plus you need to sign up to at least one other specified Westpac product.
Westpac's move matches ASB who adopted a one year 'special' on Monday at the 5.95% level.
But as the table below shows you can still get an even better one year rate from three other, smaller banks.
Interestingly, now only two banks are offering a one year rate of 6% or higher. Everyone else is below 6% for that fixed term.
These rate moves come despite a continuing upward trend in wholesale swap rates, especially for the one year term.
One year swap rates are at their highest level in four years.
But banks are flush with funds and probably need to access wholesale markets less than in the past. Certainly they are not aggressively seeking funds in retail markets; little of the wholesale cost rises including the OCR influenced changes, are flowing through to term deposit offers.
Still, the way their treasury functions are organised means the costs to mortgage product managers are not immune to wholesale pricing in the medium term.
It is probably a sign of intense competition that we are seeing the type of rate matching like today's Westpac one year 'special'.
To stay updated with the latest rates, see all banks' carded, or advertised, home loan rates here.
This is how the updated Westpac mortgage rates compare as at 9:00 am Friday, July 11, 2014:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
6.05% | 6.25% | 6.45% | 6.25% | 7.15% |
 |
5.95% | 6.30% | 6.40% | 6.65% | 6.99% |
 |
5.99% | 6.25% | 6.39% | 6.25% | 6.99% |
| Kiwibank | 5.99% | 6.29% | 6.29% | 6.95% | |
 |
5.95% | 6.30% | 6.39% | 6.65% | 6.99% |
| Co-op Bank | 6.00% | 6.00% | 6.00% | 6.25% | 6.89% |
 |
5.85% | 5.99% | 6.25% | 6.99% | |
 |
5.85% | 5.99% | 6.20% | 5.95% | 6.79% |
| TSB Bank | 5.85% | 6.05% | 5.80% | 6.60% | 7.20% |
--------------------------------------------------------------
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.