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Westpac cuts interest rates for home owners

 

5 December 2012

  • Headline standard variable mortgage cut by 0.20% to 6.51%
  • Most of Westpac standard variable mortgage customers will move to the new Premier Advantage Package discount rate of 5.81%

Westpac today announced it will reduce interest rates on its standard variable mortgage rate loans by 0.2 percentage points to 6.51% per annum. The new rate takes effect from 17 December 2012.

Customers on Westpac’s Premier Advantage Package who receive a minimum 0.7% package discount on the headline standard variable mortgage will see their new effective rate fall to 5.81% per annum.

The reduction in home loan rates will save homeowners $38 a month or $456 a year in total monthly repayments on an average mortgage of $300,000. Since October 2011, Westpac has cut its variable mortgage rates by 1.35 percentage points, equating to an annual saving of $3,192 on an average home loan.

Jason Yetton, Group Executive of Westpac Retail and Business Banking, said the move to reduce mortgage rates was part of a carefully considered decision to balance the needs of the bank’s home loan customers and those of millions of savers.

"I’m pleased we have been able to take this step for our mortgage customers at the same time as recognising just how important it is to maintain competitive savings rate for our depositors, many of whom depend on the income that they receive from their savings accounts," said Mr Yetton.

"This is happening at a time when competition to provide these rates to savers has pushed up the cost of those deposits to historically high levels, especially when they have become increasingly important to us as we reduce our reliance on other sources of funding to support our lending."

Mr Yetton highlighted the fact that the majority of Westpac's mortgage customers would be paying no more than 5.81% per annum thanks to package discounts of 0.7% offered under the bank's award winning Premier Advantage Package. And for those customers looking for security and peace of mind Westpac also offers competitively priced fixed rate loan offers including its popular three year rate which, with a packaged discount of 0.2%, currently stands at 5.39% per annum.

Editor's note: Westpac has a range of mortgage options available to customers including splitting loans between fixed and variable rates. Customers are encouraged to discuss their banking arrangements with their local Bank manager or contact Westpac on 132 558 to ensure they have the right mortgage product to suit their individual needs.