© Copyright 2024 Tella (New Zealand) Limited. All Rights Reserved. Powered by Tella.
38 minute read
Westpac Just Raised Fixed Rates. What It Means If You're Pre-Approved
Westpac just became the first bank to raise fixed rates since the July 8 OCR hike. If you're pre-approved and buying soon, here's what changes.
Nurain Nadzirah
31 July 2026
Westpac has raised its fixed home loan rates for 1-to-3-year terms—the first fixed-rate move since the Reserve Bank hiked the OCR back on 8 July.
Quick timeline:
Through June
Most banks were cutting fixed rates, competing on cheaper funding costs. (see our earlier piece on the June rate cuts)
8 July
The Reserve Bank hiked the OCR. Floating rates jumped straight away — fixed rates didn't move. (see our OCR hike refix guide)
27 July
Westpac reversed course and raised its 1-to-3-year fixed rates, undoing those June cuts.
Here's what that means if you're pre-approved and still buying.
What Actually Changes If You're Pre-Approved
Here's the thing most people don't realise pre-approval locks in how much you can borrow—not your rate.
Your actual rate only gets set when you fix the loan, which usually happens around settlement, not when you were first approved.
So, if you got pre-approved before this week, and Westpac's rate rise applies to your bank or loan term, the number you budgeted with might not be the number you actually get.
That's not a reason to panic. It's a reason to check.
What to Do If You're Pre-Approved for a Home Loan Right Now
Whichever bank you're with, here's where to start:
1. Check Your Exact New Rate If You're with Westpac
Don't assume the headline applies evenly across every term. Ask our mortgage adviser for the specific number on your loan term, then re-run your repayment numbers against it—not the figure you first budgeted with.
2. Don't Assume You're in the Clear If You're with Another Bank
Once one major bank moves, others typically follow within weeks. Treat this as your heads-up to check in now, rather than waiting until it's officially your bank's news too.
Not sure if this affects you yet?
We'll check your bank, term, and timeline against what's actually changed, no obligation.
3. Re-Check Your Approved Borrowing Amount, Not Just Your Repayments
A higher rate can affect what you're approved for under serviceability tests. Worth confirming this hasn't shifted too, whichever bank ends up applying to you.
Use our repayment calculator to see what last week's rate change means for you.
4. Ask About Rate-Lock Options
Some lenders let you lock in a rate ahead of settlement for a small fee. Worth asking now if you're close to an offer, regardless of whether your bank has moved yet.
5. Get Our Mortgage Adviser Looped in on Timing
Whether you're reacting to a change that's already happened or getting ahead of one that hasn't, the earlier the conversation, the more options you have.
Bottom line
If you're pre-approved and still buying, a rate rise headline is worth a five-minute check-in, not a five-day panic.
The fastest way to know exactly where you stand is to confirm your actual rate and re-run your numbers, rather than working off what you first budgeted with.
This article is for informational purposes only. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
Category:Buying your first homeNewsletters