“Positive geopolitical developments in the last few weeks have brought our longer-term funding costs down and we’re moving quickly to pass savings on to borrowers,” said Sarah Hearn, Westpac NZ managing director of product, sustainability, and marketing, in a media release.
Westpac’s new special rates now sit at 5.29% p.a. (three years), 5.39% p.a. (four years) and 5.49% p.a. (five years). Westpac already held a joint-low two-year special rate of 5.19% among the major banks, matched by BNZ. Across the five-year term, ANZ‘s advertised rate of 6.49% now sits a full percentage point above Westpac’s equivalent, interest.co.nz reported.
ANZ left exposed as rivals hold firm
The timing is stark. ANZ raised all its fixed mortgage rates in early June, and no other major bank followed — leaving New Zealand’s largest mortgage lender facing a likely reassessment of its position.
Financial markets add further urgency to the conversation. The OCR currently sits at 2.25%, and markets expect it to rise by almost 100 basis points over the coming year. That backdrop gives first-home buyers and property investors reason to weigh up locking in at longer terms before the rate cycle turns, even if shorter-term fixed rates remain more popular day-to-day.
A window for borrowers — but context matters
Hearn was candid that the funding shift is limited to the longer end of the curve for now.