The last of the big Aussie-owned banks has now raised its floating rate following last week's +25 bps OCR hike - but with a small stinger as well.
Westpac's Choices Floating and Choices Offset products have been increased by +35 bps from 6.24.% to 6.59%.
It's only a small stinger because Westpac still has by far the lowest floating mortgage rate of its main rivals.
(If Kiwibank raises its rate by +25 bps as expected soon, that Westpac position will be restored.)
But the change removes it's favourable best-in-market positioning and it no longer offers the lowest floating rate of any bank.
Westpac's revolving credit Choices Everyday product has also been increased, by +25 bps from 6.50% to 6.75%.
These changes are effective today for new customers, and on Tuesday, August 12, 2014 for existing clients.
At the same time, Westpac has raised all its term deposit and term PIE rates up to an 18 month term by between +10 and +35 bps. See our separate story on these changes.
See all carded, or advertised, bank home loan rates here.
You can also see all bank non-interest rate home loan incentives here.
Westpac's new floating home loan rates compare with their main rivals this morning as follows:
| below 80% LVR | Floating | Revolving |
| Credit | ||
 |
6.74% | 6.85% |
 |
6.75% | 6.75% |
 - Total Money |
6.74% | |
|
- Standard & FlyBuys |
6.74% | 6.74% |
| Kiwibank | 6.40% | 6.40% |
 |
6.59% | 6.75% |
| Co-op Bank | 6.45% | 6.45% |
 |
6.59% | 6.80% |
 |
6.30% | 6.35% |
| TSB Bank | 6.49% | 6.49% |
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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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1 Comments
At a time when banks are already expanding their margins, Westpac feel the need to be even more greedy.
Banks are expanding their margins by failing to increase deposit rates in line with lending rates. There's a huge mismatch going on - once you look behind the smoke and mirrors of the term deposit rate increases they're telling you about.
In Westpac's case, where's the 0.35% deposit rate increase on all their other savings accounts?
Looking forward to interest.co.nz's analysis of the 4 OCR increases and how banks lending rates were increased relative to savings rates over the period.
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