04%p.a. cut to 6 month home loan rate

Westpac NZ announces 04%p.a. cut to 6 month home loan rate

In response to the just announced 0.50% reduction in the Official Cash Rate (OCR) by the Reserve Bank, Westpac New Zealand has confirmed a 0.40% cut to its 6 month fixed housing lending rate. This brings its 6 month home loan rate to 5.39%pa. The rate will be effective from Friday.

Other rates remain under review.

Westpac General Manager of Product Management, David Cunningham said: "An important implication of the OCR announcement is the signal from the Reserve Bank that it intends for interest rates to remain low for an extended period. This will provide considerable cash flow benefit to New Zealand home owners with mortgages.

"Already home owners on floating rate loans are benefitting by by what amounts to over $1.4b p.a. through reduced interest rates. In the next 12 months over half of all fixed rate home loans - worth over $60b - roll over. That has the capacity to move households from a current average interest rate for these loans of around 8.25% to rates nearer 6%, releasing an additional $1.4b p.a. into the economy,"Mr Cunningham said.

"In this environment Westpac intends to support customers with very competitive offerings such as demonstrated by the new 5.39%p.a. interest rate for six month fixed terms."

ENDS

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