The rates for four-year terms are also increasing for both special and standard rates by 0.1%, up to 5.39% per annum and 5.99% per annum.
The bank is increasing its two-year fixed special and standard home loan rates by 0.14%, up to 4.89% per annum and 5.49% per annum.
Westpac’s five-year term for fixed special and standard home loans is getting the largest increase, up 0.2% to 5.49% per annum and 6.09% per annum.
Fixed special and standard home loan rates for Westpac’s one-year term remain unchanged at 4.49% per annum and 5.09% per annum.
Westpac NZ managing director of product, sustainability and marketing, Sarah Hearn, said wholesale interest rates continue to rise, which has driven up the cost of providing fixed home lending on longer terms.
“Two-year wholesale rates are more than 0.5% per annum higher than they were in late November. In that time we’ve increased our two-year fixed home loan rate by 0.44% per annum,” Hearn said.
“We’re absorbing some of the cost of those rate increases within our business, while continuing to offer some of the best term deposit rates among the big five banks on longer terms.
“We know interest rates are a hot topic among Kiwi homeowners at the moment. We’re here to help and we encourage customers to talk to us for guidance on how they can pay off their home loan faster.”
Westpac is also making several changes to its term deposit and term PIE rates.
Eight-month and 18-month term deposit rates will increase by 0.1%, up to 3.5% per annum and 3.7% per annum respectively.
Three, four and five-year term deposit rates will increase by 0.2% to 4.1% per annum, 4.3% per annum and 4.4% per annum.
The bank’s two-year term deposit rate will receive the largest increase, up 0.25% to 4% per annum.
All other term deposit terms for Westpac will remain unchanged.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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