Major bank hikes some home loan rates, cuts one

Thursday, 29 January 2026

Westpac NZ is cutting its six-month advertised fixed home loan rate, while raising some longer-term home loan and term deposit rates, in response to recent changes to funding costs.

From Monday, February 2, Westpac’s fixed advertised six-month special rate will reduce by 0.20% points to 4.49% pa. Its one-year fixed advertised special rate is unchanged at 4.49% pa.

Other advertised fixed home loan rates from 18 months to 5 years will rise by between 0.10% and 0.20% pa.

The bank says it is making broadly similar upward moves to support savings customers, with term deposit rates rising by 0.10% to 0.25% pa across a range of terms from 8 months to 5 years, effective Monday.

Westpac NZ Managing Director of Product, Sustainability and Marketing, Sarah Hearn, said wholesale interest rates continue to rise, which has driven up the cost of providing fixed home lending on longer terms.

“Two-year wholesale rates are more than 0.5% pa higher than they were in late November. In that time we’ve increased our two-year fixed home loan rate by 0.44% pa.”

Hearn said the bank is absorbing some of the costs of those rates increases within their business, adding that their home loan remain competitive compared with other banks.

“Our popular six-and-12 month advertised home loan rates remain highly competitive and offer great value for homeowners looking for more flexibility over the coming year.

“We know interest rates are a hot topic among Kiwi homeowners at the moment. We’re here to help and we encourage customers to talk to us for guidance on how they can pay off their home loan faster.”

Westpac follows other banks who have also recently hiked their home lone rates, including ANZ, who in early-January lifted its floating home loan rate by 0.1%.