Westpac cuts fixed rates for two and three year loans

Jessie RichardsonDecember 7, 2020

Westpac has announced that it will cut rates on its two and three year fixed rate mortgages.

Interest rates on two year fixed rate mortgages will be lowered by 0.05 of a percentage point to 4.84% per annum, while rates for three year fixed rate mortgages will now be offered at 5.09%, a drop of 0.04 of a percentage point.

With the Reserve Bank of Australia (RBA) choosing to keep the overnight cash rate on hold for February, Westpac has been the only of the four major Australian banks – Commonwealth Bank, ANZ, NAB and Westpac – to cut its rates this month.

In January, NAB lowered interest rates on its four year fixed term home loans to 5.44% per annum, a 20 year low for the bank. Rates for its three year fixed term loan were also cut, dropping 0.05% to 5.14%.

Commonwealth Bank is currently offering two year fixed rate loans at 4.99% interest per annum, with rates for a three year fixed rate loan at 5.24% per annum. Earlier this month, Commonwealth Bank chief executive Ian Narev commented that a rate cut “independent of any move by the Reserve bank” was “plausible over time.”

The interest rate on ANZ’s two year fixed rate loan is at 5.04% per annum, and the interest rate on its three year fixed rate loan is at 5.28%.

Westpac's rate changes come into effect on February 25.

jrichardson@propertyobserver.com.au

           

Editor's Picks