Westpac NZ has announced a range of changes to lending and deposit interest rates.
General Manager of Product, Sustainability and Marketing, Sarah Hearn, says the changes have been driven by movements in wholesale rates and yesterday’s Official Cash Rate announcement.
“The OCR has increased 25bps and as a result we’re lifting interest rates on some of our variable lending and savings products.
“Separately, we’ve seen an overall rise in wholesale interest rates over the past month. These are the rates we pay when obtaining funding to support borrowers with fixed term lending.
“As a result, we are now lifting some of the interest rates on our fixed home loans and term deposits.
“However, we’re always pushing ourselves to offer competitive choices to customers, and are doing that today through a new ‘special’ 2-year rate of 6.45% for eligible home loan borrowers.”
Ms Hearn says Westpac NZ is acutely aware of the financial pressure faced by households that have experienced increases in the cost of living.
“Recently, we were the first bank to introduce a ‘special’ rate of 5.99% for eligible customers on some longer-term interest rates to help them navigate the current uncertainty. We’re continuing to offer the rate on our 4-year and 5-year terms.
“The increases we’re announcing today on deposit interest rates will also support savers.”
Ms Hearn says Westpac NZ is working hard to help its customers understand the financial environment and the choices that may be available to them.
“We are writing to all customers on fixed-term home loans that are approaching expiry to let them know their options. We’re also telephoning customers who may be in need of extra support.
“While most households are coping well with the elevated cost of living and higher interest rates, we know some borrowers will be feeling the strain.
“It’s really important that anyone who is feeling financial stress come and talk to our experienced team early so we can discuss their options.”
