Westpac makes big cuts to fixed rate loans

Staff reporterJanuary 21, 20200 min read

Westpac has made interest rate cuts of between 0.19% and 0.50% to its package fixed rate investment loans across all terms for both interest only and principal and interest repayments.

Westpac’s 0.50% interest rate cut puts its 5-year fixed rate loan for investment lending with principal and interest payments at 3.19%.

It is now the lowest rate of its kind, according to Canstar.com.au and Westpac has positioned itself in the lowest priced 10 loans in the market in all fixed investment loan categories.

Canstar finance expert, Steve Mickenbecker said, "you know the home loan market has become competitive when a loan from a major bank has the top rate in its category."

“The investment lending market has remained sluggish, as lending to owner occupiers has shown recovery, and Westpac is clearly working to lift its share of that market.

“While Westpac’s new rates are competitive, the comparison rates are much higher, incorporating the $395 package fee and with a higher rate attaching when the loan moves to variable interest after the fixed rate period," he said.

"Investors will have to be on their toes at the end of the fixed rate period to assure a competitive rate, he warned.

Staff reporter

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Westpac
Rate Cuts
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