Westpac NZ has announced a range of changes to lending and deposit interest rates.
General Manager of Product, Sustainability and Marketing, Sarah Hearn, says last week’s 50bps increase in the Official Cash Rate was one factor behind the changes.
“Our variable lending and on-call savings interest rates are closely tied to movements in the OCR.
“That’s why we’re increasing the interest rate on our variable home loans by 40bps and on our on-call consumer savings products by 40bps to 50bps.
“Following the previous 50bps increase to the OCR on 22 February 2023, we lifted on-call savings interest rates but did not adjust home lending interest rates.”
Ms Hearn says Westpac NZ is also cutting the interest rates on its 3-year, 4-year and 5-year fixed-term home loans by up to 60bps.
“We’re offering ‘special’ rates for eligible customers across each of those terms at 5.99%. These competitive rates are a helpful way for customers to gain certainty about their repayments, which is important in a period like this where the outlook on interest rates is unclear.”
Shorter term home loan fixed interest rates are increasing by 5bps to 30bps.
Ms Hearn says Westpac NZ is closely monitoring how households are faring in managing loan repayments.
“While most customers are coping well with the rising cost of living and increases to interest rates, we know these conditions will be causing challenges for some borrowers.
“We ask anyone who is feeling financial stress to come and talk to us early so we can discuss their options.
“In the past six months we have begun making early contact with customers on fixed-term home loans that are approaching expiry to let them know their options.”
Interest rates on term deposits spanning 30 days to 18 months are increasing, while interest rates on term deposits of three to five years are decreasing.
