Westpac has started the week with some new aggressive home loan pricing.
It has released new fixed-rate mortgage specials after ending its 2 year 4.99% rate.
It's new 1 year fixed rate special is 4.89%.
It's new three year fixed rate special is now 5.39%.
It has kept its 4 year special at 5.99%
And it has reduced its five year fixed rate special to 5.75% from 5.99%. That 5.99% rate now becomes it's standard five year rate.
These specials come with conditions: there must be a minimum of 20% equity and importantly, there must be at least $100,000 of new lending.
That means customers of other banks who move their mortgage to Westpac and who have a mortgage of $100,000 or more will qualify.
But existing customers of Westpac will need to increase their loan with the bank by at least $100,000 to qualify.
These changes come after its management noted that it was not doing as well as they wanted in the New Zealand mortgage market.
Westpac's new one year special rate of 4.89% is easily the best one year rate in the market at this time for banks.
| One year fixed rate mortgages | % |
| ANZ | 5.25 |
| ASB | 5.45 |
| BNZ | 5.25 |
| Co-operative Bank | 5.25 |
| HSBC Premier | 5.25 |
| Kiwibank | 5.25 |
| SBS / HBS | 5.25 |
| TSB* | 5.25 |
| Westpac | 4.89 |
Note that TSB has a 15 month Special of 4.95%
Westpac's new three year special rate is also a clear market leader among banks.
| Three year fixed rate mortgages | % |
| ANZ | 5.90 |
| ASB | 5.75 |
| BNZ | 5.90 |
| Co-operative Bank | 5.75 |
| HSBC Premier | 5.74 |
| Kiwibank | 5.65 |
| SBS / HBS | 5.65 |
| TSB | 5.95 |
| Westpac | 5.39 |
Westpac's five year special trumps all other banks as well.
| Five year fixed rate mortgages | % |
| ANZ | 6.60 |
| ASB | 6.25 |
| BNZ | 6.50 |
| Co-operative Bank | n.a. |
| HSBC Premier | 6.65 |
| Kiwibank | 5.99 |
| SBS / HBS | 5.99 |
| TSB | 6.50 |
| Westpac | 5.75 |
Westpac's special rates at these new low levels will undoubtedly get the attention of its rivals, who may well respond directly with rate cuts of their own, or informally by offering more competitive deals on a one-on-one basis as clients negotiate.
You can find up-to-date mortgage rates for all institutions on our comprehensive mortgage rate page here »
The best way to make sense of any mortgage rate offer is to run it through our comprehensive calculator, which allows you to compare rates between banks. You can find that calculator tool here »
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
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