Non-major cuts variable rate below 4%

by Julia Corderoy20 Oct 2015
A non-major lender has announced a limited time variable rate offer below 4%.

Auswide Bank has discounted its variable rate to 3.98% (comparison rate 4.37%). The limited offer rate is available on new owner-occupied principal and interest home loans of $150,000 or more with an LVR up to 80%. 

A discounted rate of 4.19% (comparison rate 4.57%) is also available for owner occupier home loans over 80% up to 90% LVR.

Auswide Bank managing director, Martin Barrett says it is no accident they have decided to decrease their variable rate in the wake of Westpac’s decision to increase variable rates by 0.2%. 

“Westpac Bank’s increase was totally unexpected by their customers. I’d expect that they are pretty upset right now, especially given the size of Westpac’s annual profit. If other banks follow suit, I think there will be a whole lot more disgruntled borrowers, especially given the ‘big four’ own about 80% of home loans in Australia. Now is the time for customers of the big four banks to stop being taken for granted and move to a bank that appreciates its customers.

“Our interest rate offers are among the lowest variable interest rates in the country for their class as they are available on fully featured home loans with 100% Mortgage Offset and a range of package benefits - whereas many similar rates are only available on ‘basic’ loans.”