Westpac drops its latest fixed rate below 2%

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Westpac has put the final nail in the coffin of the ultra-low interest rate era by cutting the latest Big Four interest rate below 2%.

The bank increased its introductory offer to 1.99% for a variable rate, with the new variable for customers with an LVR below 70% now standing at 2.19%. For those with an LVR above 70%, the rate is now 2.29%.

The standard variable rates at Westpac have not changed, only the introductory offer being revised upwards. Their standard variable is still the cheapest among the Big Four, although it is only offered to external clients and not to internal refinancers.

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NAB still offers a fixed rate of 1.99% year on year, but in terms of major broker channel products, Westpac had been the last hurdle under the token barrier.

There are still rates starting with a 1 available in the non-bank and alternative lender industry, with Reduce Home Loans currently the lowest in the market at 1.77% variable, followed by Homestar Finance and Pacific Mortgage Group at 1.79%. .

All of the Big Four have increased their fares several times over the past month, with Westpac now on its fourth change. Previously, they had increased their fixed rates and maintained their introductory variable rate offer.

The CBA was the first to act, acting ahead of the cash rate decision earlier this month, followed by ANZ and NAB.

The RBA’s move sparked a spiraling interest rate hike after officially abandoning its intention to hold the rate stable until 2024, instead leaving an unspecified timeline for revising the cash rate upward.


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