Westpac drops two year fixed rate to 4.49%, but lower rate available at BNZ; other rivals target 1 year rate offers

Westpac today dropped its two year mortgage rate to 4.49% from 4.64%, a -15 bp reduction.

This matches TSB Bank and HSBC at that rate.

(TSB Bank offers a Samsung Galaxy S6 smart phone with their rate. The HSBC offer is only for their Premier customers.)

But Westpac's new rate is still a full +10 bps higher than the current BNZ 2 year 'special' of 4.39%.

However ANZ, ASB and Kiwibank are focusing their promotion on their one year rate, with ASB on a 4.35% offer. BNZ has the same 4.35% one year rate.

Westpac's 'specials' criteria is generally more restrictive than other banks. The require a minimum of 20% equity, salary credit to a Westpac transaction account - both of which are similar to their rivals - but they also require borrowers to take out either a Westpac credit card or a specified Westpac insurance product,

Recent movements in wholesale rates have been trending down.

In fact 2 year swap rates are at their lowest level since late 2012, while two year fixed mortgage rates are at their all-time lows. Credit spreads are now much lower than during the GFC which allows banks to hold their margins at lower retail rate offers.

Borrowers should always negotiate for lower than carded rates, especially if you have equity of 20% or greater.

Talking to your bank's main rivals and knowing what they will offer is the best way to start negotiations with your bank.

See all banks advertised, or carded, residential mortgage rates here.

These new fixed mortgage rates now compare across all banks as follows:

below 80% LVR	6 mths	1 yr	18mth	2 yrs	3 yrs	5 yrs
		%	%	%	%	%
	5.19	4.49	5.09	4.65	5.25	5.49
	4.85	4.35	4.49	4.49	4.79	5.09
	4.99	4.35		4.39	5.19	5.35
	5.19	4.49		4.59	4.85	5.35
	5.39	4.99	5.15	4.49	5.19	5.65
	5.19	4.49	4.59	4.59	4.85	5.35
	5.39	4.49		4.49	4.49	5.29
	4.99	4.49	4.69	4.55	4.79	5.29
	5.29	4.55	4.69	4.49	4.79	5.50