BNZ and Westpac lower mortgage rates

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BNZ and Westpac have cut interest rates on a number of their fixed home loans.

From Thursday, the one-year rate on conventional BNZ home loans will drop from 5.35% to 4.95%.

That’s a difference of about $50 per fortnight on a $500,000 loan paid off over 25 years.

The three-year rate goes from 5.99% to 5.69% and the five-year rate from 6.19% to 5.99%.

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These rates are available when individuals have more than 20% equity in a property.

Westpac also cut its six-month, one-year, 18-month, three-year, four-year and five-year rates.

The biggest drop was a 40 basis point cut in its one-year rate to 4.95%.

The six-month rate fell by 36 basis points and the other terms by 30.

This follows a decision by ANZ earlier in the week to cut some of its home loan rates.

House prices have fallen in recent months.

Kathryn George / Stuff

House prices have fallen in recent months.

The bank said that while wholesale rates were volatile and the official exchange rate was expected to rise further, the bank would pass the savings on to customers when it could.

Mortgage rates are generally on the rise as central banks around the world attempt to curb inflation.

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