Westpac NZ cuts all special home loan rates below 5% p.a.

Westpac NZ has become the first of the five largest banks in the current decreasing rate cycle to offer sub-5% p.a. advertised special home loan rates on all terms from 6 months to 5 years.

Effective Friday, Westpac is cutting all its advertised home loan rates by between 0.10% and 0.40% p.a., including a new 1-year special rate of 4.49% p.a.  As of Thursday afternoon, it offers the joint or outright lowest rate on all terms from 1 to 5 years.

Westpac is also cutting term deposit rates by 0.05% to 0.20% p.a. across all terms.

Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says the bank is continually looking for ways to pass on cost reductions to homeowners.

“Today’s cuts mean our one-year advertised special home loan rate has fallen by 2.65% p.a. over the last 15 months,” Ms Hearn says.

“We’ve also made significant cuts to our longer term rates, reducing our 5-year special to 4.99% p.a.  Splitting between shorter and longer terms could be an attractive option for homeowners looking for greater certainty and some protection against potential future rate rises.

“It’s an extremely competitive market out there and we continue to fight hard to win business and pass on lower interest rates to our customers.”

Ms Hearn says the bank is also aware that savings customers are watching falling interest rates closely, and has options to support them.

“In particular, our 32-day Notice Saver of 3.00% p.a. offers great value in the current environment.

“Whether borrowing or saving, we encourage customers to talk to us about their options and what might work best for them.”

Fixed Home Loan rates – Specials (effective 3 October 2025)

Fixed Home Loan rates – Standard (effective 3 October 2025)

*Interest rates are subject to change without notice. Westpac NZ’s lending and eligibility criteria, and terms and conditions apply. A low equity margin may apply. For more information please go to www.westpac.co.nz

Term Deposit & Term PIE rates (effective 3 October 2025)

*Rates are subject to change without notice. Minimum $5,000 deposit. Rates are available for Retail and Business Banking customers holding up to $5,000,000 total deposits, either solely or jointly with Westpac NZ (including PIE investments). For rates applicable to amounts in excess of $5,000,000, please contact us. Rates are not available to Financial Institutions. Other T&Cs apply, see westpac.co.nz for details and a copy of the relevant Term Sheet. Compounding interest: For terms six months or longer, interest can be compounded quarterly. 

Investments made in the Westpac Term PIE Fund (“Fund”) do not represent bank deposits or liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited (“Westpac NZ”) or any other member of the Westpac group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac group of companies, Trustees Executors Limited (as trustee), or any director or nominee of any of those entities guarantees the Fund’s performance, returns or repayment of capital.