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Westpac cuts interest rates for home owners

6 August 2013

  • Headline standard variable mortgage cut by 0.28% to 5.98%
  • New headline rate is the lowest since October 2009
  • Most of Westpac standard variable mortgage customers will move to the new Premier Advantage Package discount rate of 5.28%

Westpac today announced it will reduce its standard variable mortgage rate by 0.28% to 5.98% per annum. The new rate takes effect from 19 August 2013.

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 5.28% per annum.

The new rate takes Westpac’s home loan rates to their lowest level since October 2009. The reduction in home loan rates will save homeowners $52 a month or $624 a year in repayments on an average mortgage of $300,000. Since November 2011, Westpac has cut its standard variable mortgage rate by 1.88 percentage points, which works out at an annual saving of $4,392 on an average home loan.

“After our reduction in our home loan rates in May, I’m delighted we are able to follow up with a further cut today,” said Jason Yetton, Group Executive of Westpac Retail and Business Banking. “This will take the total savings on an average Westpac home loan amount to nearly $4,400 a year since rates started coming down.”

Mr Yetton said that Westpac had seen increasing signs of buyers returning to the housing market and that the latest interest rate reduction would help support both new purchasers and existing homeowners.

“The latest consumer surveys have shown that confidence is the key to our customers’ well-being and we believe that what we have announced today will help support growth in the housing sector as well as improve the faith in Australia's economic outlook,” said Mr Yetton.

“Against that backdrop our standard variable rates are now at their lowest level for more than three and a half years and our customers are able to take advantage of an even better discounted rate through the benefits of our award-winning Premier Advantage Package.”

For those homeowners looking for security and peace of mind about their mortgage repayments, Westpac has attractive fixed rate package discount offers including a three year deal of 4.99% per annum.

Mr Yetton said Westpac had taken a number of factors into consideration when making its decision on its interest rates including its total funding costs, particularly the price of deposits, the current state of the Australian economy and competition in the market place.

Note to Editors:

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.