Westpac has moved to cut some of its advertised fixed-term mortgage interest rates, on the heels of cuts by Kiwibank earlier in the day, matching the state owned bank's new market low offers over two and three years. And late in the day, ASB cut its four and five year rates by 40bps.
This evening Westpac said, effective Friday morning, it's dropping its 18 month fixed-term rate by 34 basis points to 5.55 per cent, its two-year rate by 24 basis points to 5.55 per cent, its three-year rate 35 basis points to 5.75 per cent, and its one-year capped rate by 25 basis points to 6.50 per cent.
This comes after Kiwibank this morning cut its standard, advertised one to five year fixed-term mortgage rates by up to 40 basis points and said it was keeping its 4.99 per cent limited time one-year special offer open.
Kiwibank cut its standard one year rate by 40 basis points to 5.25 per cent per annum, its two year rate by 24 basis points to 5.55 per cent, its three-year rate by 35 basis points to 5.75 per cent, its four-year rate by 40 basis points to 6.10 per cent and five-year rate by 40 basis points to 6.50 per cent.
Like other banks making recent cuts to their advertised mortgage rates, Kiwibank has left its floating, or variable, rate unchanged at 5.65 per cent. The most recent Reserve Bank data shows 62.7 per cent of the $172.178 billion total value of the country's almost 1.4 million mortgages is floating and 37.3 per cent fixed. That's the highest percentage on floating rates since the Reserve Bank began recording the data in 1998.