Major bank announces changes to interest rates

Westpac NZ has made changes to its housing and term deposit rates.

The move comes one day after the Reserve Bank of New Zealand announced the official cash rate will remain at 5.5%.

Special fixed home loan rates have dropped in the six-month (7.24% to 7.05%) one-year (7.14% to 6.89%) and 18-month (6.89% to 6.79%) terms.

The standard fixed home loan rates have also dropped in the 6-month (7.84% to 7.65%) one-year (7.74% to 7.49%) and the 18-month (7.49% to 7.39%) terms.

Westpac NZ general manager of product, sustainability and marketing Sarah Hearn said the bank is continuing to focus on providing value to customers while responding to changes in wholesale rates.

"We know this will be welcome news for customers looking to re-fix their mortgage soon."

"We're at a unique stage of the cycle where some customers may be looking to re-fix at lower rates from recent highs.

"We do also acknowledge that some customers may be still re-fixing their loans from the historically low rates we have seen over recent years and may still be concerned about their increasing costs.

"We continue to proactively call home loan customers who may be facing into financial difficulty to ensure they’re well supported and understand their options," she said.

"Our data shows most of our customers are coping well with higher living costs, but we encourage them to get in touch if they have any concerns."

Term deposit rates also decreased

Term deposit rates have been decreased in the six-month (5.90% to 5.80%), eight-month (6.05% to 6.00%), nine-month (5.70% to 5.80%),12-month (5.90% to 5.80%) and 18-month (5.80% to 5.70%) terms.

The interest frequency for these term lengths remain at maturity, monthly or compounding.