Westpac makes further cut to mortgage rates

Westpac makes further cut to mortgage rates

Friday, 17 January 2009
Press Release:Westpac New Zealand

Westpac New Zealand has announced a 0.66% cut to its variable (floating) home loan rate, bringing it to 7.49%p.a.. The rate change is effective for all new customers from Tuesday 20 January and for existing customers following notification period. It is the lowest variable rate of the major banks and the lowest Westpac's variable rate has been since January 2004.

Westpac has also announced its second cut in a week to long term fixed rates so that, for the first time since March 2003, all Westpac fixed mortgage interest rates are under 7.00%. Westpac will cut its four and five year fixed rates 0.11% to 6.99% p.a. The fixed rate cuts are effective from Monday 19 January.

The announcement coincides with a further drop to Consensus Forecasts for economic growth among New Zealand's main trading partners (from 0.5% to -0.1% for 2009).

Head of Product Management Brian Hayr said: "With forecasters predicting a global downturn far worse than the early 1990s and wholesale rates falling in expectation of another cut to the Official Cash Rate (OCR) at the end of the month we are in a position to be able to pass through some relief to our customers."

Since October, Westpac has cut 3.46% off its variable rate.

"We expect interest rates to continue to be volatile as governments around the world take steps to counter the economic downturn and credit crunch. Recognising the challenges being faced, Westpac is committed to maintaining a strong customer focus as demonstrated by the decision to make these cuts now," Mr Hayr said.

ENDS

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