Westpac made several changes to its home loan lineup today, including reducing the discounted variable rate on its Flexi First Option for homeowners and investors by 20 basis points.
Effective today, the Flexi First Option will carry a variable rate of 2.09% pa (comparison rate of 2.52% pa *), available to owner-occupiers for two years before reverting to 2.59% pa (comparison rate of 2.52% pa *).
For owner-occupiers with a deposit of at least 30% of the value of a property, the two-year discount rate will be even lower by 1.99% per annum (comparison rate of 2.42% per year). year*).
“The home loan market is booming as a major bank moves into territory that was once reserved for online lenders – a variable rate of less than 2%,” Mozo spokesperson Tom Godfrey said.
The record drop also places the Flexi First Option well below the average variable rate for existing homeowners and new borrowers, which, according to RBA data, currently stands at 3.08% per annum and 2.79%. per year, respectively.
St. George, Bank of Melbourne and BankSA, all of which are part of the Westpac group, have made similar changes. They also reduced the 2-year flat rates by 10 basis points to 1.84% pa (3.38% pa comparison rate *).
Along with the drop in variable rates, Westpac also increased the 4 and 5 year fixed rates by 30 basis points for the same lending options, continuing a trend we have seen for several months.
As the pressure to increase long-term fixed rates increases, lenders have started to fine-tune variable rates to get as many new customers as possible into their loan portfolios.
The Big Four banks, however, have not been too keen to offer relief to floating rate customers. Prior to today’s Westpac decision, the only other major bank to cut variable rates for homeowners this year was ANZ.
We’ve included a quick overview of the Westpac Flexi First Option below, but to see how it compares to other offerings on the market, visit our home loan comparison page, where you can filter your search by rate and type.
Westpac Flexi First option
- Discounted variable interest rate of 2.09% pa for 2 years (comparison rate of 2.52% pa *)
- No ongoing service charge
- Additional refunds, refunds and refund holidays available
Find out more
The Westpac Flexi First option comes with a standard variable rate of 2.59% pa (compare rate of 2.52% pa *), but for the first two years owner-occupiers can benefit from a reduced rate of 2.09% pa (comparison rate 2.52% pa *). Fees have been kept to a minimum and borrowers can take advantage of a number of useful features, such as the ability to make additional free repayments, access a redemption facility, split your loan, and take out a loan. repayment leave. And if you refinance a loan worth at least $ 250,000 with an LVR of less than 90%, you could receive $ 3,000 in cash back. This offer only applies to refinancing outside the Westpac group.
^ See information on the Mozo Experts Choice Home Loan Awards
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