About us Media centre

Westpac NZ cuts popular short term home loan rates.

14 Aug 2025

Westpac NZ is cutting its 6, 12 and 18-month advertised special home loan rates by 0.10% to 0.20% p.a., giving it the joint-lowest advertised rates on these terms among the five major banks as of Thursday afternoon.

Westpac’s new 12-month advertised special rate of 4.79% p.a. is the bank’s lowest rate on any term since June 2022.

Alongside this change, Westpac is also cutting some term deposit rates between the 5-month and 3-year terms. All changes are effective Friday 15 August.

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.

“Our reduced shorter-term rates offer great value for customers looking to lock in for a short term, and for those looking for longer-term certainty on repayments, we continue to have the lowest or joint-lowest 3-to-5 year advertised special rates of the five biggest banks,” Ms Hearn says.

“We know many households are still dealing with high living costs, but we expect these pressures to ease as more customers continue to roll on to lower rates over the rest of this year.

“We’re also hearing from savings customers that they’re watching falling rates closely. Westpac has absorbed some of these rate reductions over the past year. For example, our 12-month advertised home loan rates have fallen by 2.06% p.a. in the past year, compared to 1.80% p.a. for our advertised 12-month term deposit rate.

“We also have a 3.00% p.a. rate on our 32-day Notice Saver offering, for customers who don’t need immediate access to their savings.

“Our data continues to show customers managing the cost of living better than expected, but we encourage anyone who’s worried about their finances to talk to their bank.”

Fixed Home Loan rates – Special (effective 15 August 2025)

Term	New Rate	Change
6 months	5.09% p.a.	-0.20%
1 year	4.79% p.a.	-0.10%
18 months	4.79% p.a.	-0.16%
2 years	4.95% p.a.	No Change
3 years	4.99% p.a.	No Change
4 years	5.39% p.a.	No Change
5 years	5.39% p.a.	No Change

Fixed Home Loan rates – Standard (effective 15 August 2025)

Term	New Rate	Change
6 months	5.69% p.a.	-0.20%
1 year	5.39% p.a.	-0.10%
18 months	5.39% p.a.	-0.16%
2 years	5.55% p.a.	No Change
3 years	5.59% p.a.	No Change
4 years	5.99% p.a.	No Change
5 years	5.99% p.a.	No Change

*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 15 August 2025)

Term	Interest Frequency	New Rate*	Change
30 days	At Maturity	2.05% p.a.	No change
60 days	At Maturity	2.40% p.a.	No change
90 days	At Maturity	3.45% p.a.	No change
4 months	At Maturity	3.45% p.a.	No change
5 months	At Maturity	3.65% p.a.	-0.05%
6 months	At Maturity, Monthly or Compounding	3.75% p.a.	-0.15%
8 months	At Maturity, Monthly or Compounding	3.90% p.a.	No change
9 months	At Maturity, Monthly or Compounding	3.70% p.a.	-0.15%
12 months	At Maturity, Monthly or Compounding	3.70% p.a.	-0.10%
18 months	At Maturity, Monthly or Compounding	3.75% p.a.	-0.15%
2 years	At Maturity, Monthly or Compounding	3.85% p.a.	-0.15%
3 years	At Maturity, Monthly or Compounding	4.00% p.a..	-0.10%
4 years	At Maturity, Monthly or Compounding	4.10% p.a.	No change
5 years	At Maturity, Monthly or Compounding	4.10% p.a.	No change

*Westpac NZ's terms and conditions and eligibility criteria apply. Westpac Notice Saver is offered under the Westpac Notice Saver PIE Fund. Investments made in the Westpac Term PIE Fund and/or the Westpac Notice Saver PIE Fund (each a "Fund” and together the "Funds") 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 Funds’ performance, returns or repayment of capital. Any rates of return are subject to change without notice.