In what appears to be damage control, Westpac is discounting .20% off select customers' mortgages.
According to the AFR, customers with large loans who complain about the rate rise receive .20% off their mortgage rate for three months, in addition to the .70% they receive for the pro pack discount. The discounts take the rate to 5.86%.
But the bank denies the move is an attempt to quell customer backlash to its surprise .45% rate rise in December.
"Our mortgage flows remain strong and customer attrition remains around normal levels," Westpac spokesman David Lording said.
"If people are getting discounts it's because they have a lot of business with us - it's a relationship thing. We want to win all our customers' business and have a relationship at a range of levels."
Despite Westpac assurances that business has not been affected by the rate rise, Aussie Home Loans John Symond reported that there's been a 15% decrease in loan applications for Westpac - the only lender to drop in new loan volumes since the December rate movement.
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