Westpac falls into line with matching mortgage and term deposit rate reductions. That leaves Kiwibank out on a bit of a limb, but at least they have the best main-bank term deposit rate

Westpac has now followed its Aussie cousins and pushed through cuts to its carded fixed rates.

After this change, Westpac has essentially matched the others on the one year and 18 month rate, and has not followed BNZ down to 5.29% for the two year rate, sticking with the others' 5.39% level.

At the same time they have cut rates for TD savers, and on that front their best offer is 4.85% for six months.

As a result of these home loan changes, that now leaves Kiwibank with noticeably higher rates in the market. They will surely have to move down soon. But until they do they are 16 to 30 bps uncompetitive in the heart of these rate offer points.

We rarely get reader-reported rates for Kiwibank, so it is hard to know if they are matching their Aussie rivals in the market. If you have evidence they are making deals below their card, please record that in the comment section below, so that all borrowers in the home loan market know what is possible.

Generally, home loan rate cuts are 'funded ' by savers, so it isn't a surprise to see Westpac cut TD rates at the same time.

But it does mean Kiwibank's 5.10% six month TD rate is something savers should grab. It is at a level no other main bank is currently offering.

Borrowers should not expect much flexibility by banks on below-card discounts. The option for cashbacks are probably closing fast now too.

Wholesale rates are now basically stable, limiting the funding option of chasing wholesale down. That option is closed off at present.

The reader-reported mortgage rates are fluid and may be less frequent now, so please record them, if you have them. We need you to record them in the comment section below, which helps us stay on top of this fast-changing corner of the home loan rates market.

And still negotiate. How flexible they will be will depend on the strength of your financials.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below.

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees will be minimal in a rising market. But they become important in a falling market, like now.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment. 

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at January 24 2025	%	%	%	%	%	%	%
ANZ	5.99	5.57	5.39	5.44	5.59	6.19	6.19
current reader-reported rates
	5.99	5.59	5.39	5.49	5.59	5.79	5.79
current reader-reported rates
	5.99	5.59	5.39	5.29	5.69	5.79	5.89
current reader-reported rates
	6.15	5.79		5.59	5.69	5.79	5.89
current reader-reported rates
	5.99	5.59 -0.20	5.39 -0.30	5.39 -0.10	5.59	5.59	5.59
current reader-reported rates	5.99
Bank of China	6.19	5.79	5.59	5.49	5.49	5.49	5.49
China Construction Bank	6.24	5.79	5.59	5.59	5.59	6.40	6.40
Co-operative Bank (*=FHB only)	5.99	5.49*	5.49	5.49	5.69	5.79	5.79
Heartland Bank		5.49	5.39	5.39	5.45
ICBC	5.99	5.79	5.59	5.59	5.59	5.59	5.59
	6.24	5.89	5.59	5.49	5.69	5.69	5.69
	6.19	5.69	5.79	5.59	5.59	5.69	5.69