WestpacTrust Changes Interest Rates On Home Loans

WestpacTrust is the New Zealand division of Westpac Banking Corporation, which is incorporated in New South Wales, Australia

22 March 2000

WESTPACTRUST CHANGES INTEREST RATES ON HOME LOANS

WestpacTrust is increasing its floating rate for home loans by 0.5% per annum to 8.1% per annum following a similar increase in the Official Cash Rate by the Reserve Bank. The new rate will be effective from 24 March 2000 for new customers.

WestpacTrust general manager New Zealand retail and business Ross Aitken said most economists believed rates would continue to rise this year. However, he said floating rates are only one home loan option. Customers who want greater certainty in their payments can choose fixed rates or capped rate loans.

“Capped rates are a good home loan option in an environment of changing interest rates as they can’t increase above the agreed cap but they can go down if the floating rate falls,” Mr Aitken said. “Capped rate loans also provide some of the flexibility of floating rate loans as customers can vary payments and add lump sums without additional cost. WestpacTrust is the only bank offering capped rate loans.”

ENDS

For further information, please call:

Jane Anderson

WestpacTrust Public Relations Manager

04 498 1657

025 502 325