New Zealand

Home loan rates slide further

16:17 pm on 17 September 2009

Variable and short-term home loan rates are falling, as conditions in global credit markets improve.

Westpac has trimmed its variable and six-month fixed term rates, a week after the ASB moved to cut its rates.

Westpac has lowered its floating rate to a new low of 5.69% and its six-month fixed term rate to 5.29%, the lowest in the country.

Spokesperson Mike Davey says longer-term rates are higher than short-term rates at present, so many customers are thinking again about fixed-term loans.

ANZ's chief economist, Cameron Bagrie, says the rates are the result of improving bank margins and an easing in global credit conditions.