Westpac hikes fixed mortgage rates amid economic debate and borrower concerns
Westpac has raised its fixed-term home loan rates by 30 basis points, pushing its two-year fixed mortgage to 4.75%. The move comes as political leaders debate the government’s handling of the economy and its impact on households.
The rate increase applies to loans with terms between two and five years. Finance Minister Nicola Willis responded by advising mortgage holders to compare offers from other US banks. She stressed that better deals might still be available elsewhere.
Prime Minister Christopher Luxon defended the government’s economic record, pointing to lower inflation and reduced interest rates as signs of progress. Meanwhile, Labour leader Chris Hipkins argued that rising unemployment and business closures showed deeper economic problems.
Details on which banks have kept rates unchanged remain unclear. Current two-year fixed mortgage rates from other lenders have not been publicly updated since Westpac’s announcement.
Westpac’s rate hike takes effect immediately, leaving borrowers to weigh their options. The government continues to highlight broader economic improvements, while critics focus on ongoing financial pressures for households. Mortgage holders are being urged to review competing offers from mortgage calculators before committing to new terms.
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