Westpac cuts interest rates for home owners
4 February 2015
- Headline standard variable mortgage cut by 0.28% to 5.70%
- New headline rate is the lowest since April 2009
- Most Westpac standard variable mortgage customers will move to the new Premier Advantage Package discount rate of 5.00%
Westpac today announced it will reduce its standard variable mortgage rate by 0.28% to 5.70% per annum (Comparison Rate 5.84%1). The new rate takes effect from 20 February 2015.
Customers on Westpac's Premier Advantage Package who receive a minimum 0.70% package discount on the headline standard variable mortgage will see their new effective rate fall to 5.00% per annum.
The new rate takes Westpac's home loan rates to their lowest level in six years. 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.
"Today's rate reduction is good news for home owners and will improve the faith in Australia's economic outlook and provide a necessary boost to consumer and business confidence," said Jason Yetton, Group Executive of Westpac Retail and Business Banking.
"Over 67% of our customers2 are ahead in their mortgage repayments thanks to the benefits of our award-winning Rocket Repay offset account. The smart use of an offset account combined with lower interest rates including today's cut will help our customers realise their dream of home ownership a lot sooner."
Under the Premier Advantage Package, new borrowers including customers looking to upgrade their home will be able to take advantage of a 90 bps discount on the latest headline standard variable rate if they take out a loan above $250,000. This means they would pay no more than 4.80% per annum on the current rate.
Westpac's award winning3 Flexi First Option Home Loan also offers customers buying their first home with more flexibility including competitive discounts on mortgage rates and no up-front or ongoing fees.
Homeowners looking for security and peace of mind about their mortgage repayments could choose to fix all or part of their mortgage through attractive fixed rate package discount offers including a two year rate of 4.84% or a three year rate of 4.94%.
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 or visit www.westpac.com.au to ensure they have the right mortgage product to suit their individual needs.
1 The comparison rate is based on a Rocket Repay Home Loan of $150,000 over a term of 25 years. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
2 On average over the last 12 months
3 2014 Canstar First Home Buyer Award