Westpac cuts interest rates for home owners - 5 October 2012
5 October 2012 .
- Headline standard variable mortgage cut by 0.18% to 6.71%
- Most of Westpac standard variable mortgage customers will move to the new Premier Advantage Package discount rate of 6.01%
- New reductions to fixed home loans rate announced: Popular three year rate cut by 0.15%, which, with 0.2% discount, takes it to 5.39%*
Westpac today announced it will reduce interest rates on its standard variable mortgage rate loans by 0.18% to 6.71%. The new rate takes effect from 15 October 2012.
Customers on Westpac’s Premier Advantage Package who receive a minimum 0.7 percentage point discount on the headline standard variable mortgage will see their new effective rate fall to 6.01%.
The reduction in home loan rates will save homeowners $36 a month or $432 a year in total monthly repayments on an average mortgage of $300,000. Since October 2011, Westpac has cut its variable mortgage rates by 1.15%, equating to an annual saving of $2,820 on an average home loan.
Westpac Group Executive Retail and Business Banking Jason Yetton said: “In coming to this decision we have sought to balance the needs of our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts.
“At the same time we continue to offer package discounts on our headline mortgage rate which will see the majority of our home loan customers pay no more than 6.01%. And for those borrowers who are looking for security and peace of mind over a longer period we are pleased to make further reductions to our fixed rate homes loans that are now at new three year lows and are very competitively priced.”
Mr Yetton said Westpac’s decision was based on a range of factors including the price of deposits, which remain at very competitive and attractive rates for savers but when combined with the cost of wholesale funding continue to put pressure on bank finances.
"While we have seen some easing in the wholesale market in recent months, our overall costs including the price of deposits remain historically very high,” added Mr Yetton.
Westpac’s new fixed rate offers will see the following reductions on the one year, two year, three year, four year and five year rates. (The new rates include the 0.2% discount offered under the Premium Advantage Package. They are effective from 10 October 2012.)
- One year packaged fixed rate – down 0.20% to 5.49%
- Two year packaged fixed rate – down 0.15% to 5.39%
- Three year packaged fixed rate – down 0.15% to 5.39%
- Four year packaged fixed rate – down 0.20% to 5.69%
- Five year packaged fixed rate – down 0.20% to 5.69%
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.