Westpac's interest rate will drop to 4.49 percent. Photo: AFP
Westpac has become the latest bank to cut interest rates.
It said from Friday it would cut all its advertised home loan rates by between 10 basis points and 40 basis points.
It's bringing its one-year special down to 4.49 percent, in line with BNZ and ANZ.
Westpac will also cut its term deposit rates.
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General manager of product, sustainability and marketing, Sarah Heran, said it would mean the one-year special rate had fallen by 2.65 percent over the past 15 months.
"We've also made significant cuts to our longer term rates, reducing our five-year special to 4.99 percent p.a.
"Splitting between shorter and longer terms could be an attractive option for homeowners looking for greater certainty and some protection against potential future rate rises.
"It's an extremely competitive market out there and we continue to fight hard to win business and pass on lower interest rates to our customers."
Mortgage adviser Jeremy Andrews, from Key Mortgages, said he had seen an increase in mortgage applications recently.
He said he expected rates to cut their test rates - the interest rates they use to assess whether a borrower can afford a loan
"Especially if we get a 'double' 50 point OCR cut.. And that would help increase borrowing capacity supply and buyer demand.
"The relief on turnaround times being under a week again with several banks, is likely to push out again if we do get a big influx of people who've been holding off, now seeking approvals for spring and summer."
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