Westpac cuts six month home loan rate

Thursday, 16 January 2025

Lloyd Burr explains why there's always a difference between the Official Cash Rate (OCR) and the mortgage rates banks charge us.

A major bank has made the first home loan cut of the year to its short term rates.

Westpac NZ has cut its advertised special 6-month home rate by 0.20% per annum to 5.99% p.a. and its standard 6-month rate by 0.20% to 6.59%, effective Friday January 17.

As of Thursday afternoon, the new rate was the joint-lowest advertised special 6 month rate of the five major banks.

Westpac has cut its 6-month home loan rates.

The bank was also cutting some term deposit rates by between 0.10% and 0.15% p.a.

Westpac NZ general manager of product, sustainability and marketing, Sarah Hearn, said the bank expected competition for home lending to be fierce again this year.

“We’re acting swiftly to ensure we keep offering great value,” she said.

“While some economic uncertainty remains both domestically and overseas, homeowners rolling onto new fixed rates should start to feel the relief of lower repayments as the year goes on.”