Westpac the final big four bank to fail to pass on full rate cut
Westpac are the last of the big four to fail to pass on the full rate cut.
They've cut the same amount as NAB, dropping their variable home loan rates by 15 basis points.
Commonwealth Bank drops their rates by just 0.13 per cent, the lowest out of the big four. ANZ were the third to cut their rates, by 0.14 per cent.
“Westpac will be decreasing interest rates by 15 basis points for variable home loan customers, bringing our Standard Variable Rate (SVR) to the lowest we have on record for owner occupiers with principal and interest repayments,” David Lindberg, Westpac chief executive, consumer said.
“In making the decision, we took into account the reduction of the official cash rate and the commercial pressures of the low interest rate environment.
“For an owner occupier customer with a standard variable home loan of $400,000 on principal and interest repayments, this reduction could result in a saving of $36 per month, or $432 each year.
“Providing the support and finance to help Australians into their homes is a core part of our business strategy.
"Today’s announcement will assist customers wanting to get ahead on home loan repayments, as well as new home buyers looking to purchase a property,” Lindberg said.
The following interest rate changes will come into effect on Wednesday 16 October 2019:
- Variable home loan (owner occupier) rate has been reduced by .15% p.a. to 4.83% p.a. for customers with principal and interest repayments.
- Variable residential investment property loan rate reduced by .15% p.a. to 5.38% p.a. for customers with principal and interest repayments.
- Variable home loan (owner occupier) rate reduced by .15% p.a. to 5.42% p.a. for customers with interest only repayments.
- Variable residential investment property loan rate reduced by .15% p.a. to 5.64% p.a. for customers with interest only repayments.