Westpac offer lowest two-year fixed rate mortgage after cutting home loans
Westpac have followed ANZ and NAB and cut their two and three year fixed mortgage rates for new owner-occupiers.
They now have the lowest two year fixed rate on the market at 1.79 per cent, having chopped 20 basis points from their record-low 1.99 per cent offering.
Westpac's three year rate has seen an 11 basis point cut, now at 1.88 per cent.
The rates are only for owner-occupiers paying principal and interest with an LVR ratio of 70 per cent or less.
The two year investor fixed rates have also been cut by 0.2 per cent.
RateCity.com.au database shows that 57 lenders now have home loan rates under two per cent, including three of the big four banks.
“Westpac has thrown down the gauntlet to its competitors today proving there’s still heat in the fixed rate market.” RateCity.com.au research director Sally Tindall said.
“While we’re nearing the bottom of the rate cycle, provided the cash rates remains above zero, it’s likely there’ll be more cuts in the weeks to come as banks compete for the record levels of new lending coming through the door.
“Lenders are currently in a strong position to offer low fixed rates, which also have the benefit of locking a customer in for the fixed term.
“Westpac is now offering the lowest 2 year fixed rate, and was already offering the lowest 4-year fixed rate in the market – an unusual position for a big four bank.
Tindall says home loans at the nation's largest lender, Commonwealth Bank, are starting to look outdated, with just one fixed rate under 2 per cent.
“Westpac group is reserving its sharpest rates for people who own at least 30 per cent of their home.
“Property price rises aren’t just helpful for people planning to sell. If you’ve had your home loan for a few years you might find you have more equity than you think and qualify for one of these low-rate loans."