Westpac mortgage rate drops again
Westpac has launched a new ‘special’ one year fixed-term rate of 2.29% per annum – one of the lowest one-year terms currently being offered on the market.
The rate is the lowest being offered among New Zealand’s main banks, and is beaten only by Heartland Bank – Online’s 1.99% rate, and HSBC Premier’s 2.25% rate.
There’s a catch – The new rate is available to owner-occupiers with a minimum 20% equity, and general manager of consumer banking and wealth Gina Dellabarca says interest payments have dropped dramatically since as little as two years ago.
“Two years ago, the same special home loan rate over the same term was 4.15%,” Dellabarca commented.
“It would have cost $1,119 a fortnight to service a $500,000 mortgage over 30 years. Now, the lower interest rate means the same repayment would be $885 a fortnight – a saving of $6,084 over a year.”
She added that, to date, most existing customers have moved off payment deferrals and are now back to full repayments on their mortgages.
Mortgage interest rates remain the lowest on record, for both owner occupiers and investors, with further drops predicted by leading economists.
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