Westpac cuts and claims market-leading rate levels for fixed rate home loans for almost all its terms. It has cut term deposit rates too

Westpac is the next major bank to follow with significant retail rate cuts.

And some of its fixed home loan rate cuts now mean they lead the overall market with an 18 month 4.49% rate, a 4.85% three year rate, and a 4.99% rate for four and five years, all of which are market-leading. Some of its other key rates have dipped to match others at market-leading levels.

At the same time, Westpac has reduced all its term deposit rates, by between -5 and -20 bps. It's new six month rate is down to 3.55% and its one year rate is down to 3.45%.

These changes are effective as at October 3, 2025.

Oddly, Westpac has observed that falling term deposit rates will be making savers nervous. The oddity is that ther 'support' for these savers is to point out that "our 32-day Notice Saver of 3.00% p.a. offers great value in the current environment." But every rate bar two in their current TD card is above that 3% level.

Don't forget, the RBNZ will be reviewing its OCR level mid-next week. Markets are pricing in more than a -25 bps cut, but less than -50 bps. So basically they don't know. -50 bps is just as likely as -25 bps in this pricing.

So savers need to be prepared for sub -3% rates sooner than they would probably like.

That same wholesale market pricing sees a total of -75 bps cut by February 2026, which is only two more meetings away after this upcoming one.

We should also note that TSB still has the market leading two year rate of  4.49% which is -16 bps lower than the new ANZ/BNZ/Westpac rates for that term.

To compare mortgage rate offers in a way that includes the application and account fees costs (or break fee costs if you need to do that), and applying the impact of a cashback/legal fee reimbursement/ or other incentive, you can now use our new home loan comparison calculator. You can find it here. Or, for convenience, we have added it to the bottom of this article.

We sense that the ability to achieve meaningful discounts from carded rates is now much harder, so the impact of the incentives offered are currently playing an outsized role. Reader-reported mortgage rates are welcome, so please record them if you have them. We need you to record them in the comment section below, which helps us stay on top of this aspect of the home loan rates market.

And still negotiate. How flexible banks may be will depend on the strength of your financials.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below.

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, like now.

Here is the snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at October 3, 2025	%	%	%	%	%	%	%
ANZ	4.89 -0.10	4.49 -0.26	4.59 -0.16	4.65 -0.10	4.89 -0.26	5.49 -0.10	5.49 -0.10
	5.04	4.75	4.75	4.75	4.99	5.29	5.49
	4.99	4.49	4.75	4.75	4.95	5.09	5.39
	5.05	4.75		4.79	5.05	5.39	5.59
	4.99 -0.10	4.49 -0.26	4.49 -0.26	4.65 -0.10	4.85 -0.10	4.99 -0.10	4.99 -0.40
Bank of China	4.98	4.68	4.68	4.78	4.88	5.35	5.35
China Construction Bank	4.99	4.75	4.75	4.75	4.95	5.99	5.99
Co-operative Bank (*=FHB only)	4.99	4.39* -0.26	4.75	4.75	4.99	5.39	5.49
ICBC	5.09	4.55	4.79	4.89	4.99	5.35	5.39
(*=FHB only)	5.09	4.29*	4.75	4.75	4.99	5.39	5.39
	5.09	4.75	4.99	4.49	4.99	5.39	5.49