Westpac Home Loans

Westpac is an Australian bank operating in New Zealand that provides home loans, personal loans, credit cards, accounts, insurance and investments.

Westpac is one of the winners of Canstar’s most recent Outstanding Value | Home Lender awards. The awards recognise the financial institutions that deliver the best mortgage products for Kiwi homeowners.

The award comes on the back of recognition from our expert research panel for the bank’s mortgage products that deliver Outstanding Value:

  • Residential Fixed Home Loans


What types of home loans does Westpac offer?

Westpac offers a range of different home loan products:

Choices Fixed

Fix your interest rate and it will stay the same for the fixed rate term even if interest rates in the market change. You have the option to earn Airpoints Dollars.

Choices Floating

The interest rate varies with the market but you can repay lump sums whenever you like without any additional costs (T&Cs apply).

You also have the option to earn Airpoints Dollars and/or to add an offset account(s) to reduce the interest paid.

Choices Everyday Floating (revolving credit)

Combine your daily transactions and home loan into one account.

Split Home Loan

The most flexible option is to keep some of your home loan on a floating interest rate and then split the remainder across fixed rate terms.

Westpac also offers construction loans, plus First Home Loan and Family Springboard mortgages to help first home buyers.

How do I apply for a Westpac home loan?

You can apply by phone or online, or via a Westpac Mobile Mortgage Manager, who will visit you in your home. For more details, check out the Westpac website.

Before you start your application for a home loan, you will need evidence of your:

  • Income, including salary, dividends, rent, business profits, etc
  • Expenses, such as food, rent, bills, loan debts, insurance, etc
  • Deposit – how much cash or equity you have, including any KiwiSaver investments
  • Personal details, including a form of valid photo ID, such as your passport or driver’s licence

Canstar’s free comparison tool gives you the ability to compare Westpac home-loan products with those from other lenders in the mortgage market. For more details, just click on the button below.

Compare Home Loans

Helpful Home Loans Information

Here are the four most common types of home loans:

Fixed-rate home loan

A fixed-rate home loan has an interest rate that is set for a fixed time period, commonly between one and three years years.

The main advantage of a fixed-rate loan is that it gives you certainty of your repayments over the fixed term.

The main disadvantage of a fixed rate loan is its inflexibility; generally, large additional payments cannot be made. You’ll probably also face a break fee if you decide to switch mortgages or lenders before the end of the fixed term.

Floating-rate home loan

A floating-rate loan has an interest rate that rises and falls over the period of your home loan. This can be in response to movements in the Official Cash Rate, or due to a business decision by your financial institution.

The main advantage of a floating-rate loan is its flexibility. While you must meet your minimum repayments, you can pay off extra lump sums whenever you want to. There are also no financial penalties if you decide to switch mortgages or lenders.

A disadvantage of a floating rate loan is that your minimum repayment amount can rise or fall at any time. Floating rates are also usually higher than fixed rates.

Interest-only home loan

Instead of paying off your principal loan, plus interest repayments, you only pay off the interest fees. This type of loan is most often used by investors who intend to sell the property for capital gains.

Interest-only home loans are not recommended for standard owner-occupiers, due to the increased long-term interest costs associated with not paying off the loan principal (the original loan amount).

Generally, interest-only home loans have a short time frame (up to five years) before they revert to a standard principal and interest loan.

Line of credit home loan

A line of credit home loan is a mortgage that allows you to borrow against the equity in your home. It gives you the ability and flexibility to access a portion of the equity at any time, up to an agreed limit, in a similar way to an overdraft.

You only pay interest on any sum borrowed, usually at a variable rate, which means you can make extra payments to reduce the sum owed at any time.

Other home loan features

There are many different features that can be attached to your home loan, which can include:

  • An offset account
  • A redraw facility
  • The ability to make extra repayments
  • The ability to split the loan between fixed and variable (floating)
  • The ability to switch to a different type of loan
  • Ability to pre-pay interest
  • Online functionality
  • Lending terms, including its LVR (loan to value ratio)
  • Guarantor security availability


Canstar Research
Award: Outstanding Value | Home Lender 2024

Written by: Bruce Pitchers | Last updated: April 19, 2024