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As the battle for customers intensifies, a second major bank has announced a cut to its fixed rate on selected home loan products.
Westpac has cut its fixed rate for three years to 5.14 per cent per annum for its Premier Advantage Package.
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The new offer, which includes a packaged discount of 0.2 per cent, is effective Friday 24 January 2014 and represents a cut of 0.05 per cent on the current three-year fixed interest rate.
Tony MacRae, general manager, Westpac mortgage broker distribution, said the offer would provide a welcome boost to homeowners and is also available to new and existing customers.
“Westpac understands the important role mortgage brokers play daily in helping many Australians own their home sooner, and we’re pleased to be able demonstrate our commitment to our broker partners and their clients by offering a competitive three-year fixed rate for home owners who are looking for an opportunity to get ahead with mortgage repayments or save on the things that will matter the most to them this year,” he said.
The rate cut follows NABs recent announcement of a cut to the interest rates on its 3-year and 4-year standard fixed rate Homeplus Package products by 0.05 per cent.
Interestingly, this wave of fixed rate cuts follows a spate of fixed rate hikes late last year.
In November The Adviser reported that lenders had increased the fixed rates on over 180 home loan products since September.
At the time Alex Parsons, CEO of RateCity, said longer-term fixed rates are on the way up, with about half of all four- and five-year fixed rate products climbing in the past two months.
The turn around in fixed rates could be seen as a sign the market is wavering in its belief the Reserve Bank's next move is up.
