Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


WestpacTrust Revises Interest Rates On Home Loans

19 November 1999


WestpacTrust is revising interest rates on home loans by lowering its three, four and five year fixed rates and raising floating rates.

The three year fixed rate will drop from 8.5 percent to 8.25 percent, the four year fixed rate will drop from 8.75 percent to 8.6 percent, and the five year fixed rate will fall from 8.95 percent to 8.8 percent. The interest rate on floating rate home loans will increase to 7.25 percent.

The changes to fixed rates will take effect from 21 November. The change to floating rates will take effect for new loans from 7 December and from 29 December 1999 for existing floating rate home loans.

WestpacTrust general manager New Zealand retail and business Ross Aitken attributed the revisions to the bank's desire to offer customers a range of rate options and general pressure on wholesale interest rates including the Reserve Bank's 0.5 percent increase in the Official Cash Rate earlier this week.

"The increase in the OCR along with rising wholesale interest rates have forced us to raise the floating rate by 0.5 percent," Mr Aitken said. "But we are also lowering our longer term fixed rates to give customers a competitive range of rates and payment options."

WestpacTrust chief economist Bevan Graham warned that upward pressure would continue on floating interest rates. "As the economic recovery continues to gather momentum, the Reserve Bank will move to counter budding inflationary pressures," he said. "This week's move in the OCR is therefore the first in what we expect to be a sustained but modest increase in interest rates over the course of the next 12 to 18 months."

Mr Aitken said: "The home loan market is still very competitive and WestpacTrust is currently offering 0% interest for the first month on Choices floating rate home loans. This offer is open to new home loan customers and existing customers who redocument their loans. That is a saving of about $615 for a $100,000 loan on the new floating rate.

"Floating rates are only one home loan option. Customers who want greater certainty in their payments can choose fixed rates or capped rate loans. Capped rates are a good home loan option in an environment of changing interest rates as they combine some of the flexibility of floating rate loans with the security of knowing your interest rate will never rise above the agreed cap during the capped rate term. WestpacTrust is the only bank offering capped rate loans."


For further information, please call:

Jane Anderson
WestpacTrust Public Relations Manager
04 498 1657
025 502 325

© Scoop Media

Business Headlines | Sci-Tech Headlines


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news