Westpac to cut by 0.2% but more for IO borrowers

Westpac have cut their interest rate after today's RBA meeting by 0.2 percent.

It is understood there will be higher rate cuts for its IO borrowers at 35bps for investors.

Westpac's rate cut is effective Tuesday 18 June.

David Lindberg at Westpac said the bank took many factors into account in making the decision.

“We are operating in a historically low interest rate environment, which creates the opportunity for home-owners to get ahead on their repayments,” he said.

“It is also a good time for first home buyers to get onto the property ladder with some of the lowest rates in the history of the Australian mortgage market available.”

Westpac announced a range of mortgage interest rate cuts for variable home loan customers and introduced a new first home buyer special for owner occupier principal and interest customers with a fixed rate of 3.49% p.a. for five years.

Westpac customers who choose to package their home loan with the Premier Advantage package receive an additional discount on their home loan rate.
 

The following interest rate changes will come into effect on Tuesday 18 June, 2019.
 

• Variable home loan (owner occupier) rate has been reduced by .20% p.a. to 5.18% p.a. for customers with principal and interest repayments.
• Variable residential investment property loan reduced by .20% p.a. to 5.73% p.a. for customers with principal and interest repayments.
• Variable home loan (owner occupier) rate reduced by .20% p.a. to 5.77% p.a. for customers with interest only repayments.
• Variable residential investment property loan rate reduced by .35% p.a. to 6.09% p.a. for customers with interest only repayments.

David Lindberg, Westpac Chief Executive, Consumer said today’s rate change was carefully considered by the business. 

Currently 69% of Westpac home loan customers are ahead on their repayments, including offset balances.

NAB and CBA cut by the full 0.25 percent.

ANZ cut by 0.18 percent, saying it also had obligations to its deposit holders.

ANZ's new lowest rate will be 3.63%, however they are only passing on a cut of 0.18 basis points effective June 14.

Effective from June 25 CBA's standard variable rate home loans will be reduced by 0.25% p.a.