Just 14 days after starting the recent rate cut flurry, Westpac cuts both home loan and term deposit rates again. It now mostly just matches rivals, but for some terms is again market-leading

Just two weeks after it started the latest round of retail rate cuts, Westpac has cut its carded rates again.

But this time, instead of leading the market, they are adjusting to the lower rates their rivals implemented after Westpac's first move.

Notably, they have not cut their six month fixed rate. It remains at 7.05% with them choosing not to chase ASB's low 6.99% carded offer for that popular term.

But they have adopted ASB's new low 5.99% rate for a fixed five year term.

In between, Westpac's 12, 18 and 24 month offers now match their rivals.

But they have gone lower for 3 and 4 years fixed. Their new three year rate is -15 bps lower than any of their main rivals and at 6.29% is actually only bested by the Heartland Bank rate for that term.

And going one step further their new four year fixed rate is now the market low at 6.19%, matching SBS Bank which was already at that level.

Westpac has also cut its term deposit rates by between -10 bps and -30 bps. That means Westpac no longer has any 6% rate offers for savers.

In its release, Westpac said; "We continue to see fairly low numbers of customers struggling with cost of living challenges, but we know many families are doing it tough." Obviously this comment was aimed at borrowers.

Almost all banks will have some flexibility in their rate offers. So the carded rates are just the start. Negotiate. How flexible they may be will depend on the strength of your financials. And don't forget, banks have savvy tools at hand to 'know' the likely valuation of your property, so if the LVR is near 80% you may not find them very accommodating for a lower rate. With falling house prices, the point where low equity premiums start applying is shifting around as well. See this.

And the carded rates we report here can be different to the rates banks might offer in their banking app. We would like readers to reveal what their banking app shows as the potential offer rates. Please add that market intelligence in the comment section below.

A quick check of the wholesale swap rate chart below gives a clear understanding of where funding costs are heading.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below. Term deposit rates can be assessed using this calculator.

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees will be minimal in a rising market. But they become important in a falling market.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment. Updated with Kiwibank changes effective Monday.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at July 25, 2024	%	%	%	%	%	%	%
ANZ	7.05	6.85	6.69	6.49	6.35	7.14	7.14
	6.99	6.85	6.69	6.49	6.35	6.29	5.99
	7.05	6.85	6.65	6.49	6.39	6.39	6.39
	7.05	6.85		6.49	6.39	6.39	6.39
	7.05	6.85 -0.04	6.65 -0.14	6.49 -0.26	6.29 -0.10	6.19 -0.20	5.99 -0.40
Bank of China	7.05	6.85	6.75	6.49	6.29	6.29	6.29
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.05	6.79	6.69	6.49	6.35	6.35	6.35
Heartland Bank		6.69	6.49	6.35	6.15
ICBC	7.19	7.05	6.79	6.69	6.59	6.49	6.49
	7.24	7.14	6.89	6.49	6.35	6.19	6.19
	6.99	6.85	6.89	6.49	6.39	6.39	6.39