Westpac NZ cuts key lending rate, raises others as funding costs rise.

Westpac NZ is introducing the lowest 2-year advertised fixed home loan rate among the five biggest banks as of midday Friday, while lifting other fixed home lending rates and term deposit rates in response to a sharp rise in funding costs.

Effective Monday 21 September, Westpac’s 2-year advertised special rate will reduce by 0.16% to 5.29%p.a.  Westpac’s other home loan rates will rise by between 0.10% and 0.26%.

At the same time, the bank is supporting savers by raising most longer term deposit rates by between 0.10% and 0.25% p.a.

Westpac NZ Managing Director of Product, Sustainability and Marketing Sarah Hearn says rising geopolitical tensions in recent weeks have caused a surge in wholesale rates, which the bank uses to fund longer-term lending.

“Even with today’s rate changes, we’re absorbing a lot of our recent cost increases rather than passing them on to homeowners,” Ms Hearn says.

“With the OCR forecast to rise over the next year, now is a good time to think about your home loan strategy and what options may be best for you.  If you want more certainty on your repayments for longer, and some potential protection against further rate rises, our 2-year special rate of 5.29% p.a. could be a good option.

“A third of our current home lending is on the 2-year rate so we know this is a popular term for customers.

“We’re also helping customers build their savings with a range of leading term deposit rates among the five biggest banks.  For those who want more immediate access to their savings, we think our 32-day Notice Saver continues to offer great value at 3.00%p.a.

“We appreciate higher rates may be concerning for homeowners due to refix.  We’ll work together with customers who need help managing their money, and we encourage them to contact us if they need any help or advice.”

ENDS

Westpac Choices Fixed Home Loan rates – Special (effective Monday 21 September 2026)

Westpac Choices Fixed Home Loan rates – Standard (effective Monday 21 September 2026)

*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 Monday 21 September 2026)

 
*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. Compounding interest: For terms six months or longer, interest can be compounded quarterly.  Other T&Cs apply, see westpac.co.nz for details and a copy of the relevant Term Sheets for the savings or investment products referred to in the media release or in the table above.

Investments made in Notice Saver (which is offered under the Westpac Notice Saver PIE Fund) or in the Westpac Term PIE Fund (together referred to here as “Funds”) do not represent bank deposits or liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited  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 Funds’ performance, returns or repayment of capital.