Anti-ICE demonstrations continued across several American cities and Finance Minister Nicola Willis criticised the Reserve Bank over Adrian Orr's resignation.
The last big New Zealand bank has dropped its fixed home loan rates after the latest Official Cash Rate cut.
Westpac announced changes to its six-month and one-year rates today, effective from tomorrow, Friday.
Its six-month rate dropped 20 basis points and the one-year rate dropped six basis points. Thebank’s six-month special rate is now advertised as 5.29% and its one-year special rate is advertised at 4.89%.
Meanwhile, Westpac’s standard rates, applicable to borrowers with less than 20% equity, have been lowered to 5.89% for a six-month term and 5.49% for one year.
Westpac announced today that it was lowering its fixed home loan rates. Photo / Westpac
Westpac’s standard rates are slightly lower than ANZ’s standard six-month and one-year terms.
They are also lower than Kiwibank’s six-month rates, but higher than Kiwibank’s one-year rate. They’re also higher than the standard rates at BNZ and ASB.
“We’re working hard to provide customers a range of great home loan rates that will provide value and meet the needs of those wishing to fix their loans across a range of different terms,” Westpac general manager Sarah Hearn said.
New 3.25% OCR sees banks cut rates
Kiwibank’s six-month fixed home loan special and standard rates were cut by 20 basis points to 5.29% and 6.19% respectively on Monday.
Its one-year fixed special and standard rates have fallen by 10 basis points, down to 4.89% and 5.79%.
Meanwhile, its two-year fixed special and standard rates have fallen by just four basis points to 4.95% and 5.85% respectively, with the bank’s three-year special and standard rates falling by six basis points to 5.29% and 6.09%.
Kiwibank’s variable, revolving, four- and five-year fixed and special rates remained unchanged.
The OCR was cut by 25 basis points to 3.25% on May 28 in a widely expected move by economists and financial markets. Photo / Alex Burton
The bank also cut all of its term deposit rates by between five and 15 basis points.
Last week, ASB and ANZ also cut their rates. Both banks are offering 4.89% over 18 months – the lowest rate since April 2022.
The Official Cash Rate (OCR) was cut by 25 basis points to 3.25% on May 28 in a widely expected move by economists and financial markets.
The Reserve Bank also lowered its forecast rate track. It now projects an OCR of 2.85% by the end of the year, down from a 3.1% forecast in February.
That implies at least one more rate cut this year, with mixed odds on a second.
“If their mortgage is under $250k-$300k then maybe fixing for one year is actually not a bad option,” he said.
Those with mortgages over half a million dollars should split their loan, Miglani recommended.
Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.
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