Major intensifies competition with more cuts

by Caroline Dann23 Aug 2012

Westpac is intensifying competition between the Big Four by slashing its fixed rates less than a week after reducing its variable rates.

It cut its three and five-year 'home and investment property loan' rate by a respective 10 and 50 basis points.
Tony MacRae, general manager for Westpac mortgage broker distribution, told Australian Broker Online the cuts were to ensure "we are fundamentally a sustainable and a competitive lender."
"[It] can help brokers' clients by guaranteeing their repayments for a fixed period, while also allowing additional repayments of up to $30,000 over the term. 
"Brokers can secure these current low rates for up to 90 days by selecting the 'Fixed Rate Lock In' option for their clients," he said. 
It comes less than a week after Westpac announced a limited-edition, reduced variable rate package aimed at brokers.
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  • by SunnyCoastBroker 23/08/2012 9:42:34 AM

    How can they be "targeting brokers" when they have substandard commission payments, the longest clawback period and segmentation?? If they were serious about wooing brokers, these are the areas they need to target. Maybe their market share is slipping.....

  • by Prisco 23/08/2012 9:49:11 AM

    If they want to increase broker support, why don't they increase commissions. Rates aren't too bad at the moment!

  • by Deano 23/08/2012 10:51:29 AM

    WBC who continue to think that RATE is the only thing astounds me.