year rate to drop as other rates rise

Westpac is cutting its two-year home loan interest rates, with the bank’s pending 5.29% advertised special rate set to be the lowest of the five big banks’ popular two-year rates.

The 0.16% drop kicks in from Monday next week, Westpac said.

The four other main banks in New Zealand have two-year fixed mortgage rates of 5.39% (Kiwibank), 5.45% (ASB and BNZ) and 5.49% (ANZ), according to interest.co.nz

However, while the two-year rate is dropping, Westpac’s other home loan rates will rise by between 0.10% and 0.26% from Monday. The bank’s one-year rate is currently 4.99%, and its three-year rate 5.39%.

Savers would benefit from increases to most longer-term deposit rates by between 0.10% and 0.25% a year, Westpac said.