Westpac has changed two home loan rates.
It has removed its one year special, effectively raising it by 10 bps.
This puts it back to the same rate offered by all its rivals except BNZ who has retained its 10 bps advantage.
Westpac have also cut their three year fixed rate. The reduction is 26 bps to 6.39%, matching the rate offered by BNZ.
The changes are effective on Friday, February 14, 2014.
Changing rates early on a Friday is an unusual move by a bank as this is the usual day for contract settlement.
For clients of other banks who may be settling at 6.65% or 6.60%, revised documents may be needed if you wanted those banks to match the latest Westpac rate.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
 |
5.49% | 5.85% | 6.29% | 6.60% | 7.20% |
| BNZ | 5.39% | 5.85% | 6.29% | 6.39% | 7.20% |
| Kiwibank | 5.49% | 5.99% | 6.40% | 6.90% | |
 |
5.49% | 5.69% | 6.29% | 6.39% | 7.20% |
| Co-op Bank | 5.29% | 5.85% | 5.85% | 6.25% | 7.10% |
 |
5.39% | 6.29% | 6.55% | 7.20% | |
| SBS / HBS | 5.35% | 5.60% | 5.80% | 6.10% | 6.70% |
| TSB | 5.30% | 5.85% | 5.99% | 6.40% | 7.20% |
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10 Comments
Interest rate cuts by banks (this reality denied by some) always welcomed by home-owners with a mortgage.
3 years is not a bad term, but still too many dark global clouds to lock in for so long.
Pity we don't ever see the floating rate do any floating/diving - it seems to be more fixed than the fixed rates!
Your danger MB is confusing an interest rate margin cuts by a bank who is after market share, with an interest rate cut, massive difference recognisedby just about everyone by a few. One is sustainable, one is just a temporary market share grab to be taken back asap. Hardly worth a mention other than for those that want to get fixed asap, and not for those that expect rate rates such as yourself. Let the mugs take that fixed rate right?
Yes, but a interest rate cut is an interest rate cut.
Cuts =cuts.
However, It is fun to be instructed & corrected by a Bank Apologist who is charged with infiltrating social media and online business forums to sway opinion and influence/ teach us.
They say you can get your message across more effectively online with humour & throwing ideas in rather than 'teacher/parental' mode.
Most already know this MB, and you're unteachable anyway, I know that - I keep telling you, yes true, the problem is what I'm saying is not terribly a matter of opinion to debate. There are plenty of things that are worthy of it here in matters of the economy and markets etc, but when I see stuff being written as fact in areas where my knowledge is better, I sometimes comment, but in all cases for the benefit of the few others who may not know, and might listen - like for the benefit of those still unknowingly awaiting your two interest rate cuts, admittedly that is a matter of opinion, and only time will tell.
There are subjects here like property, where as a home owner with only 15% of my assets tied up in housing, have little experience or expertise in that market compared to many here - I listen with some interest to those that I have learnt to value their opinions - I learn who to respect by who gets called out and can't respond to questions with logic, and I feel the need to do the same in my areas. I apologise if it's not numerous, and I try to comment a lot less these days, but sometimes I do get frustrated and can't bite my tongue. But claiming someone is an apologist for the banks, or anyone else for that matter, is pretty pathetic when we're just discussing facts.
While we're on the subject of interest rates, I'm going to go out on a limb here and predict that the RBNZ won't raise rates in March and will more likely do so in April. There are two reasons. Firstly the dollar has tracked higher recently, causing them to pause, and secondly, the inflation print of Q4 was still on the low side at 1.6% so I'm thinking they'll want a look at Q1 before making a final decision.
Mike - thats alway possible of course but be aware that the Q4 CPI was an upward surprise to both the markets and the RBNZ and it was the first positive Q4 CPI in 4 years from memory as lower food prices in that qtr always supress the index. It will have pushed up the expected OCR track in the RBNZ's modelling, all other things being equal, and so far they are.
Also its becoming pretty obvious that Wheeler is someone who likes to be predictable and do as he says he will unless something dramatic happens i.e. he doesn't want to spook markets. In January he said March hike about as clearly as he could and if he doesnt go in March he will cause some market reaction, although probably not great as the market will rightfully then assume April as you say. But if nothing major happens between now and the 13th, I think its a 90-10% risk reward March over April as there is just no upside for Wheeler to leave it a month.
The rate cut does not signal wholesale funding pressures are coming down, as Grant A has rightly pointed out. If you believe rates are "coming down" you would have to be in lala land. There are so many infactual comments I see from the same people I thought I would make a rare comment - Grant A, I'm with you.
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