Westpac announces interest rate decreases for home loan and small business customers

Westpac

Westpac has announced further changes to support home loan and small business customers, including lowering fixed home loan rates and reducing rates on a number of small business loans.

Home loan support

Westpac has made further reductions to fixed interest rates for home loan customers, including:

  • Fixed interest rate of 1.99% p.a. on a four year term for owner occupied customers on principal and interest repayments with a Premier Advantage Package.
  • Fixed interest rate of 2.09% p.a. for one, two and three year terms for owner occupied customers on principal and interest repayments with a Premier Advantage Package.

Small business support

Westpac has made significant reductions to interest rates for eligible new business loans provided under the Government’s Coronavirus SME Guarantee Loan Scheme, including:

  • Fixed interest rate of 2.38% p.a. for terms of three to five years, a reduction of up to 0.56% p.a.1
  • Variable interest rate of 3.09% p.a. on new fully secured small business loans, a reduction of 0.29% p.a.

Richard Burton, Westpac Acting Chief Executive Consumer Division said: “We recognise it has been a tough time for many Australian households, and these changes mean that customers will be able to access even lower interest rates on our home loan and small business loans.

“However, we are in an extraordinary period with the official cash rate at a historical low and unconventional monetary policy measures in place. It is critical we carefully manage interest rate changes, while continuing to do our part in supporting customers and the economy,” Mr Burton said.

Guil Lima, Westpac Chief Executive Business Division said: “Small businesses are a major employer of Australians and have an important role in helping with the nation’s longer-term economic recovery.

“We have made significant reductions to some small business loans to support lending and growth, as part of our ongoing efforts to assist small businesses during the pandemic,” Mr Lima said.

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