Major banks cut two-year mortgage rate

Westpac and BNZ have joined ANZ in cutting some home loan rates.

BNZ revealed on Wednesday it was slashing its “classic” two-year mortgage rate from 5.69% to 5.39%, while its standard rate will drop from 6.29% to 5.99%.

Westpac has also lowered its two-year fixed rate to 5.45%, the same as ANZ, which cut its special rate on Tuesday.

Interest rates have been steadily climbing in recent months, although the cost of wholesale funding for banks has fallen in recent weeks.

It’s expected that the Reserve Bank will once again lift the official cash rate next week.