CORRECTED:
Westpac has ended its market leading 4.99% one year fixed rate mortgage Special. (This was a special rate that only applied to <80% LVR lending.)
The lowest one year fixed rate is now offered by BNZ, Kiwibank, and SBS/HBS at 5.25%. SBS/HBS still offer a 4.99% rate for a six month fixed term.
Westpac has also lowered rates for four of its other fixed rate terms.
The Westpac one and two year standard fixed rate each fall 4 bps to 5.45% 4.45% from 5.49% 4.49%.
Its four year fixed rate is reduced by 15 bps to 6.20% from 6.35%.
Its five year fixed rate has been dropped 10 bps to 6.60% from 6.70%
All other home loan rates from Westpac are unchanged.
These new rates are effective from Tuesday, September 11, 2012.
A comprehensive and up-to-date listing of all mortgage rates is here »
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8 Comments
Sign me up for the 2 year rate please!!
"The Westpac one and two year standard fixed rate each fall 4 bps to 4.45% from 4.49%".
OK, well the 4.99 1 yr was a little temporary tempter rate to test the market & try to hook some floaters & new customers. However, we are still on a downward trend generally.
Pity that the term "Floating" is now being used unethically since wholesale etc rates have been declining but the "Floating" rates are "Fixed" now. Because the banks want you back on fixed (because that's where they can keep you locked-in & where they can charge you special break fees for having the audacity to sell your house, move or refinance). Now where are the 15 year fixed rates (as in USA & UK). We think our rates are low - but we are the 2nd highest in the Western world.
The Banks will try all their tricks to persuade the masses that mortgage rates have plateaued and will not reduce any further, when in reality the tumultuous state of the world financials points to the exact opposite. Rates will continue to hold at their record low levels, and possibly reduce further, for those willing to sit and wait .
Yup indeed. Unfortunately the banks rely on peoples ignorance to help them post massive profits year after year, when in fact by understanding how their mortgage works, the majority could slash thousands off their mortgage by either re-negotiating with their bank, or going to another lending Institution. Time and time again I have seen this repeated, where aquaintances arent prepared to do anything, because of how their mortgage is structured, and what they are paying, where "they are coping" In other words its too hard.
That's OK, I'll explain to you how it works.
You take a fixed rate loan at say 4.99% for 1 year. The bank goes out and hedges that loan through the swap market (pay fixed), thereby locking in the margin today for the life of the loan.
It doesn't matter to the bank where the level of rates sit. They are more concerned with the difference between swap rates and the mortgage rate.
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