Westpac passes on 28 basis points to borrowers from August 19

In a surprise move, Westpac has announced it will reduce its standard variable mortgage rate by 28 basis points  to 5.98% per annum.

The new rate takes effect from 19 August 2013.

It is the first lender to pass on more than the 25 basis points cut from the cash rate by the RBA today.

Both Commonwealth Bank and NAB have announced they will pass on the full rate cut, but with different start dates.

ANZ will only make its independent interest rate announcement on Friday, but is likely to pass on the full rate cut if not more - ANZ passed on 27 basis points in May.

Lender

New standard variable rate

Effective date

NAB

5.88%

August 12

Commonwealth Bank

5.90%

August 14

Westpac

5.98%

August 19

ANZ

6.13%

Friday August 9 announcement

ING Direct will also pass on the full rate cut as will Yellow Brick Road as has Heritage Bank.

Westpac's mortgage rate will reduce to 5.28% from August 19 for those entitled to a package rate discount of 5.28%.

The new rate takes Westpac’s home loan rates to their lowest level since October 2009.

Since November 2011, Westpac has cut its standard variable mortgage rate by 1.88 percentage points of 200 cut by the RBA from the cash rate.

homeloancomparison

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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