Westpac cuts fixed rates, offers mortgage holidays

by Ksenia Stepanova24 Mar 2020

Westpac has cut two of its fixed-term home loan rates, becoming the fourth major bank to do so over the past week.

The changes came into effect on Tuesday 24 March, and have been made as part of its ongoing support for New Zealanders affected by COVID-19.

The new home loan rates are:

  • 1 year fixed term ‘special’ rate reduced to 3.09%
  • 2 year fixed term ‘special’ rate reduced to 3.39%

This has brought Westpac in line with BNZ and Kiwibank’s new one-year fixed rates, with ANZ maintaining the cheapest one-year deal in the market at 3.05%.

All major banks immediately cut their floating rates following the Reserve Bank’s emergency reduction of the Official Cash Rate (OCR) to 0.25%, with four main banks so far making a move on their fixed-term rates.

Westpac’s NZ general manager of consumer banking and wealth Gina Dellabarca says the bank is implementing a number of measures to help customers affected by the COVID-19 outbreak, potentially including mortgage holidays for those in financial hardship.

“We urge people who are concerned about their finances to contact us to discuss their options, which can include mortgage holidays or temporary interest-only payments on their mortgages,” Dellabarca said.

“We’ll be announcing additional support initiatives in the near future.”

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