Westpac cuts mortgage rates

Westpac bank has cut its mortgage rates, with a new floating rate of 5.69 per cent and its six month fixed rate from 5.39 per cent to 5.29 per cent.

It describes this 5.29 rate as "the best in the market, whether floating or fixed."

"These rates show that considerable benefits are flowing through to New Zealanders at a key point in the economic cycle," said the bank's general manager of retail banking Bruce McLachlan.

The new rates take effect for new customers from tomorrow and for existing customers from October 5.

Two weeks ago the ASB slashed its floating home mortgage rate by 65 basis points from 6.4 per cent to a market-low rate of 5.75 per cent, which it said was its lowest floating rate in more than 40 years.

-NZ HERALD STAFF