Wellington, Sept 14 NZPA - Westpac New Zealand is cutting one of its variable home loan rates to 5.69 percent per annum and its six-month fixed rate to 5.29 percent.

The 5.69 percent variable rate is offered on its Choices Everyday Home Loan product and was previously 6.49 percent.

The standard variable home loan rate drops to 6.29 percent from 6.49 percent.

The six-month fixed home loan rate was previously 5.39 percent.

"These rates show that considerable benefits are flowing through to New Zealanders at a key point in the economic cycle," Westpac general manager of retail banking, Bruce McLachlan, said.

The changes to the Choices Everyday, standard floating rate and six month fixed rate will take effect for new customers from tomorrow. Choices Everyday and standard floating rate changes will take effect for existing customers on October 5.