The rate drive among Big Four banks has taken a new turn as Westpac announced a new, market-leading interest rate.
As the Reserve Bank of Australia’s cash rate continues to sit at 0.1%, all of Australia’s major lenders are engaged in a home loan rate war. Westpac’s is now the lowest around, sitting at just 1.79% for two year fixed home loans and 1.88% for three year fixed mortgages.
NAB currently have the highest rate of the Big Four, at 2.44%, with ANZ at 2.24% and CBA at 2.14%.
Westpac’s rate cut isn’t just limited to its headline brand: it will also be available at subsidiaries such as St George Bank, Bank of Melbourne and BankSA. It will only be offered to customers with a loan-to-value ratio of less than 70%.
“This is a fantastic product for a Big Four bank to come out with, and will be coming up in all the searches for brokers,” said Raj Ladher of YourMortgage.com.au. “It’s crazy how low interest rates have got and this is superb for consumers.
“This is the perfect time to get out their bank statement, check what their rate is and then ask some hard questions of their lender. There’s a good chance that the other majors will have to follow suit, too.”