The Red Bank takes a sharp knife to its three, four and five year fixed home loan rates, making them all much lower than their main rivals. They also trim term deposit rates

Westpac has reduced its 'special' home loan rates for fixed terms of three, four and five years.

And these reductions are substantial. Their three year 'special' rate has been cut by -30 bps to 3.69%.

Their four year rate has been cut by -56 bps to 3.79%.

And their five year 'special' has been also cut by -56 bps to 3.89%.

As noted however, these reductions only relate to 'special' rates and as such need at least 20% equity in the property borrowed against.

Westpac's conditions for a 'special' rate are unique to them. To be eligible, you not only need a minimum of 20% equity, you also need to credit a salary directly to a Westpac transaction account, to be issued prior to drawdown date. Their special fixed interest rates cannot be used in conjunction with any other Westpac home loan offers or discount packages, including previously negotiated offers, legal fee contributions or the Westpac Choices Home Loan with Airpoints™. Special fixed interest rates do not apply to loans for business or investment purposes.

Some readers should also note that these reductions don't apply until Monday, March 9, 2020 so transactions due to close this week won't qualify.

After these changes, Westpac will have the lowest fixed rates for three, four and five year terms of any of the major banks.

Among challenger banks, Heartland Bank has a lower three year rate, and China Construction Bank has lower rates for all equivalent terms. And HSBC already had their rates for these terms at the level Westpac has settled on.

TSB is matching Westpac with their Price Match Promise (so long as you ask for this match).

These cuts are not being matched for Westpac's Standard rates - which means that first home buyers who don't have a 20% deposit won't be benefiting from these reductions.

Westpac is also reducing its term deposit rates by-10 bps across the full six month to five year range. Savers are 'paying' for this home loan reduction.

Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.

Fixed, below 80% LVR	Floating	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at March 5, 2020	%	%	%	%	%	%	%
ANZ	5.19	3.45	3.49	3.65	3.99	4.75	4.85
	5.20	3.39	3.75	3.55	3.89	4.19	4.29
	5.30	3.49	3.39	3.55	3.89	4.09	4.19
	5.15	3.45		3.55	3.89	3.99	4.09
	5.34	3.39	4.25	3.55	3.69	3.79	3.89
Bank of China	5.75	5.25		5.35	5.50	5.70	5.99
Co-operative Bank	5.15	3.49	3.59	3.59	3.89	3.99	4.09
China Construction Bank	5.50	3.15		3.15	3.19	3.30	3.45
ICBC	5.15	3.18	3.18	3.18	3.20	3.99	3.99
Heartland Bank	3.95	2.89		2.97	3.39
HSBC	5.24	3.54	3.54	3.20	3.69	3.79	3.89
	5.29	3.39	3.69	3.55	3.89	4.19	4.29
	5.29	3.39	3.55	3.55	3.89	4.45	4.55
Price Match Promise			3.39		3.69	3.79	3.89

In addition to the above table, BNZ has a unique fixed seven year rate of 5.70%.