Home Loan Wars Heat Up

Posted on May 23rd, 2013 · Posted in News

Westpac has fired the latest round in the fixed-rate home loan wars as lenders battle for new borrowers following the Reserve Bank’s recent cash rate cut.

The bank dropped its one-year fixed-rate home loans to 4.79%, while its Bank of Melbourne and St George divisions lowered their 1-5 year fixed rates below 5%.

The Reserve Bank’s decision to slash the cash rate to 2.75% on May 7 2013 saw a flurry of lenders, including the big four banks, pass on the 25-basis-points cut in full.  ANZ took a step further by dropping its standard variable mortgage rate by 0.27% to 6.13%, matching NAB.  Westpac has the highest standard variable mortgage rate among the big four with 6.26%.  The moves came amid lower funding costs for banks and strong profit growth.

Considering mortgage rates are at their lowest since the global financial crisis now may be a good time to consider fixing your interest rates.  Talk to us today about a FREE finance review and let us strengthen your financial future.