Westpac cuts rates for FHB rentvestors

Westpac cuts rates for FHB rentvestors
Staff reporterDecember 7, 2020

Westpac is offering discounts of up to 105 basis points for property investment loans.

The latest round of cuts sees Westpac especially targeting first-time home buyers and rentvestors.

Andy Wright, Westpac head of portfolio management for home ownership, said it had reduced fixed rates for first time buyers by 40 basis points for principal and interest repayments.

The bank is also introducing a five-year introductory variable rate for first-time buyers and abolishing establishment and monthly fees.
The five-year investment loan of 4.09 per cent includes a discount of 105 basis points.

The "flexi" five-year loan is set at 3.79 per cent, which includes a discount of 80 basis points.

"These changes are designed to help first time buyers at the start of their home ownership journey and a cut in fees means they can put their savings towards purchases for their new home," Mr Wright told Fairfax Media.

"This offer also extends to 'rentvestor' first-home buyers who are looking to purchase their first property to rent out. We're seeing this trend increase, with many first-home buyers purchasing properties to rent in more affordable areas while choosing to live in close proximity to the city."

The major bank lenders are aggressively reducing key fixed and investor interest-only rates because they have undershot the Australian Prudential Regulation Authority's 30 per cent cap on new lending. 

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