Westpac cuts variable home loan interest rates

Westpac today announced a range of mortgage rate decreases for variable home loan customers, including a reduction of .20% per annum (p.a) for owner occupier customers and a reduction of .30% p.a. for investor customers with interest only repayments.

The following interest rate changes will come into effect on Tuesday 16 July 2019.

  • Variable home loan (owner occupier) rate has been reduced by .20% p.a. to 4.98% p.a. for customers with principal and interest repayments.
  • Variable residential investment property loan reduced by .20% p.a. to 5.53% p.a. for customers with principal and interest repayments.
  • Variable home loan (owner occupier) rate reduced by .20% p.a. to 5.57% p.a. for customers with interest only repayments.
  • Variable residential investment property loan rate reduced by .30% p.a. to 5.79% p.a. for customers with interest only repayments.

“Today’s announcement means our Standard Variable Rate (SVR) will be the lowest it has been in more than 45 years for owner occupier home loan customers with principal and interest repayments,” David Lindberg, Westpac Chief Executive, Consumer said.

“The decision reflects the pressures of the declining cash rate in an historically low interest rate environment.

“It’s critical that we continue to carefully manage our business in a sustainable way for the longer term and take into account the diverse needs of all our stakeholders.”

For an owner-occupier customer with a standard variable home loan of $400,000 on principal and interest repayments, the .20% p.a. rate reduction will result in a saving of $800 each year.

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