Westpac has announced a two-year fixed rate of 4.99%. The home loan rate is a 40 basis point reduction, and is effective from today.
It’s the bank’s lowest two-year fixed rate offering since September 2009 and it is currently the only major bank to offer a fixed-rate home loan below 5%, though coming at a time when demand for fixed-rate products is falling.
Westpac will hope customers will consider the lower fixed-rate offering as an alternative to a variable rate mortgage (where mortgage exit fees are banned and customers can refinance relatively easily), locking them in for two-years.
NAB’s lowest fixed-rate home loan rate is 5.34% for its one-year home loan, the Commonwealth Bank offers a one-year fixed rate of 5.19% while ANZ offers a two-year fixed rate at 5.49%.
A number of smaller lenders offer fixed rate of 4.99% including ME Bank, Resi and Newcastle Permanent.
Non-bank lender Easy Street, owned and operated by Sydney-based Community First Credit Union, is offering a variable rate honeymoon home loan special rate at 4.99%
The Westpac fixed-rate cut follows its subsidiary bank St. George announced cuts to its fixed rate offerings today.
Another lender, CUA today cuts three-year fixed home loan to 5.30%, which it says is one of the lowest in the current market.
Talk to your Discovery Finance Group home loan expert today on 1300 88 73 28 to see what we can arrange for you!