New rates take top or equal spot among big five banks
Westpac NZ has lowered its six-month and one-year home loan rates, positioning itself as a market leader among the country’s five largest banks.
The move gives the bank either the outright or joint lowest advertised rates across several terms.
“We’re working hard to provide customers a range of great home loan rates that will provide value and meet the needs of those wishing to fix their loans across a range of different terms,” said Sarah Hearn (pictured), Westpac NZ general manager of product, sustainability, and marketing.
New home loan rates effective June 13
The new special rates, effective June 13, include a six-month rate of 5.29% p.a. and a one-year rate of 4.89% p.a., which are the joint lowest advertised by any of the big five banks (as of 3pm on the day of announcement).
Westpac’s three-year special rate remains the outright lowest at 4.99% p.a., while its four- and five-year terms sit at 5.39% p.a., either matching or leading the competition.
The bank’s 18-month rate remains at 4.95%, just above the 4.89% offered by ANZ, ASB, and BNZ for that term, RNZ reported.
Support for borrowers amid fixed loan rollovers
“With record numbers of home loans currently rolling off fixed rates, these changes show we are committed to offering compelling rates to benefit existing customers and attract new ones,” Hearn said.
She added that Westpac is also enhancing digital features to support borrowers.
“New functionality in our Westpac One app that allows eligible customers to move from a floating rate to a fixed rate is proving very popular,” Hearn said.
Rate outlook could be stabilising
Swap rates have fallen significantly since early 2025 but are now starting to lift slightly as markets anticipate the Reserve Bank is nearing the end of its official cash rate cutting cycle, RNZ reported.
BNZ chief economist Mike Jones said the latest Monetary Policy Committee decision – which included one member voting against a rate cut – suggests RBNZ may be on the “home stretch” of easing.
“Whether it’s one more, two more or even three more cuts, the messaging tends to suggest we’ve had some big cuts to date and we’re getting towards the end,” Jones said.
BNZ still forecasts two more cuts to reach an OCR low of 2.75%, though firmer data could limit further reductions. If correct, shorter-term and floating rates could fall further, while longer-term rates may already be near their floor, RNZ reported.
ASB has also updated its outlook, now expecting the RBNZ to pause in July before cutting the OCR in August and again in October – bringing it to a projected trough of 2.75% by year-end. ASB analysts noted the central bank is prepared to “hunker down” while monitoring inflation and global trade tensions.
