Westpac announced it would reduce all its advertised home loan rates by 10 to 40 basis points.
Its one-year special rate has been lowered to 4.49%, matching BNZ and ANZ.
“Today’s cuts mean our one-year advertised special home loan rate has fallen by 2.65% p.a. over the last 15 months,” Sarah Heran, general manager of product, sustainability, and marketing, said.
“We’ve also made significant cuts to our longer-term rates, reducing our 5-year special to 4.99% p.a. Splitting between shorter and longer terms could be an attractive option for homeowners looking for greater certainty and some protection against potential future rate rises.”
“It’s an extremely competitive market out there, and we continue to fight hard to win business and pass on lower interest rates to our customers,” she added.
Heran said the bank is also aware that savings customers are closely monitoring the declining interest rates and has measures in place to support them.
“In particular, our 32-day Notice Saver of 3.00% p.a. offers great value in the current environment.
“Whether borrowing or saving, we encourage customers to talk to us about their options and what might work best for them.”
Key Mortgages adviser Jeremy Andrews reported a recent rise in mortgage applications.
He said he anticipated that rates would be lowered on their test rates—the interest rates used to determine if a borrower can afford a loan.
“Especially if we get a ‘double’ 50-point OCR cut… And that would help increase borrowing capacity supply and buyer demand.
“The relief on turnaround times being under a week again with several banks is likely to push out again if we do get a big influx of people who’ve been holding off, now seeking approvals for spring and summer.”