Westpac splits floating rate
It may lead the market, but the rate is just one basis point below what Kiwibank has been offering customers for some time.
The move to split the card across all fixed and floating rates is in response to the Reserve Bank’s LVR requirements and to help make the decision making process easier for customers in assessing what options are available to match their circumstances.
The introduction of the new 5.64% standard floating rate for new lending is designed to give a competitive floating option for customers with more than 20% equity, the bank says
General manager retail, Ian Blair, said as conjecture on when the official cash rate might move continues, more customers are looking at their options and splitting their loan to take advantage of rate certainty (fixed) and repayment flexibility (floating).
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