Westpac has dropped its standard variable mortgage rate by 22 basis points following the Reserve Bank’s decision to cut the cash rate, bringing it to the major’s lowest rate in 50 years.
Jason Yetton, group executive of Westpac Retail and Business Banking said the decision to reduce the standard variable to 5.48% takes the total reduction this year to 50 basis points.
“Our mortgage rates are now at their lowest in 50 years. [The] reduction in home loan rates, coupled with the 0.28% reduction announced in February, will save homeowners on the Premier Advantage Package $1,104 a year in repayments on an average mortgage of $300,000.”
Yetton also added that the finances of Westpac’s home-owning customers were in good shape, with more than 67% of customers ahead in their mortgage repayments.
Under the Premier Advantage Package, new borrowers – including customers looking to upgrade their home – will be able to take advantage of a 90 basis point discount on the latest headline standard variable rate if they take out a loan above $250,000.
According to Yetton, this means they would pay no more than 4.58% on the current rate.
Westpac also dropped the headline variable business lending rate by 25 basis points.
“Passing on the full rate for business customers should help improve confidence among business owners who are the backbone of Australia’s economy,” Yetton said.