Westpac reduced its special five-year mortgage rate to 4.99%, with other banks expected to follow. - Economist Tony Alexander suggests 4.99% is a good rate for conservative borrowers to lock in. - Mortgage brokers advise waiting, expecting further rate drops and highlight potential risks of long-term fixes. A five-year mortgage rate of 4.99% could be “as low as it goes” and is worth considering for those wanting to set and forget, according to a leading economics commentator. Start your property search Find your dream home today.Search Westpac reduced its five-year special rate to 4.99% ahead of the Official Cash Rate dropping to 2.5% this week, and other banks are expected to follow suit. Tony Alexander said that for conservative borrowers like himself, 4.99% was a good rate to lock in for five years. The former BNZ chief economist wrote in his OneRoof column this week: “If I were borrowing at the moment, I would personally be quite happy to fix five years just below 5%.” Back in 2021, Alexander encouraged Kiwis to take advantage of the 2.99% five-year rate that banks were offering. Those who did avoided the crunch of rising interest rates and saved tens of thousands of dollars. Alexander admits he didn't know sharp interest rate rises were just around the corner, but he did think that the offer was too good to miss, concluding that the Covid era of super-low rates would come to an end at some point.
Oct 2025 Westpac reduced its special five-year mortgage rate to 4.99%, with other banks expected to follow. By Mike Curragh
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