- Home
- Home Loans
- News
- Westpac slashes fixed rates, pouring more fuel on the fixed rate fire sale
Westpac slashes fixed rates, pouring more fuel on the fixed rate fire sale
Westpac has announced it is cutting fixed rates on a range of owner occupier and investor home loans by up to 0.20 per cent, effective tomorrow.
Westpac’s decision comes in the wake of a spate of fixed rate cuts from Australian banks in recent months, including the nation’s largest bank, CBA, who moved their rates on Tuesday.
This is the second time this year that Westpac has cut some of its fixed home loans, after cutting some of its 2-year fixed rates in February.
RateCity.com.au research shows 40 lenders have cut fixed rates on around 450 products since the beginning of the year.
ANZ is the only big bank to have not cut its fixed rates this year.
The rate cuts include:
Westpac Fixed Option Home Loans, Premier Advantage Package
Owner occupiers, principal and interest
Term | Old rate | New rate | Change |
3 year | 3.89% | 3.79% | -0.10% |
4 year | 4.29% | 4.09% | -0.20% |
5 year | 4.19% | 4.09% | -0.10% |
Investors, principal and interest
Term | Old rate | New rate | Change |
2 year | 3.95% | 3.89% | -0.06% |
3 year | 4.19% | 3.99% | -0.20% |
5 year | 4.49% | 4.39% | -0.10% |
Sally Tindall, Research Director at RateCity.com.au, said other banks were likely to continue to slash fixed rates, especially now the nation’s biggest two banks had moved in the space of a week.
“Right now, the banks have one eye on the possibility of a rate cut and the other on securing new customers. As a result, more than 40 lenders have dropped their rates since the beginning of the year.
“Competitively priced fixed rates are a great marketing tool to secure new customers and keep them on their books for up to five years.
“But with a rate cut on the horizon, potentially in the second half of 2019, Australians are reluctant to lock in their rate.
“This week’s housing finance data shows just 16 per cent of new loans taken out are fixed,” she said.
Disclaimer
This article is over two years old, last updated on April 11, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
Compare home loans in Australia
Product database updated 16 Nov, 2024
Share this page
Get updates on the latest financial news and products
By continuing, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.
