Westpac NZ is lifting advertised fixed home loan rates on terms from 1 to 3 years, in response to a rise in funding costs.
Westpac is also raising some term deposit rates – giving the bank the highest or joint-highest rates among the five biggest banks on all term deposits from 6 months to 4 years, as of Monday afternoon.
Effective Tuesday, Westpac’s 1-year advertised special home loan rate will rise 0.20% to 4.99%p.a. and the 2-year advertised special rate to 5.39%. Westpac’s 4-and-5-year rates are unchanged and remain the joint-best of the five biggest banks, as of Monday afternoon.
A full list of rate changes are detailed below.
Westpac NZ Managing Director of Product, Sustainability and Marketing, Sarah Hearn, says while Westpac cut some longer fixed term rates six weeks ago, re-escalating tensions in the Middle East have once again driven up wholesale interest rates, causing bank funding costs to rise.
“The 1-year swap rate is about 0.30% higher than it was a month ago, so with today’s changes we are passing on some of those higher costs but also absorbing some,” Ms Hearn says.
“We’re also working really hard to provide good value and options for savings customers, including our limited time 3.70%p.a. offer on our 9-month term deposit to help drive fundraising for the Westpac Rescue Helicopters.
“As always, we encourage people to talk to us sooner rather than later if they have any concerns about their money situation, so we can make a plan to help keep them on track.”
