Westpac has today announced it will decrease variable interest rates by 0.25% per annum (p.a.) for home loan customers, as well as rates on small business cash-based loans and overdrafts.
The reduction means an owner occupier customer with a standard variable home loan of $400,000 on principal and interest repayments will save an extra $60 per month, or $720 per year.
The following home loan interest rate changes will come into effect on Tuesday 17 March 2020:
- Variable home loan (owner occupier) rate has been reduced by 0.25% p.a. to 4.58% p.a. for customers with principal and interest repayments.
- Variable residential investment property loan rate reduced by 0.25% p.a. to 5.13% p.a. for customers with principal and interest repayments.
- Variable home loan (owner occupier) rate reduced by 0.25% p.a. to 5.17% p.a. for customers with interest only repayments.
- Variable residential investment property loan rate reduced by 0.25% p.a. to 5.39% p.a. for customers with interest only repayments.
Westpac will also be reducing the variable interest rate on small business cash-based loans and overdrafts by 0.25% p.a.
“We recognise that COVID-19 will have a direct impact on our nation’s economy and we want to provide additional support to our small business and home loan customers at this unprecedented time,” David Lindberg, Westpac Chief Executive, Consumer said.
“This will give our variable home loan and small business customers more money in their back pocket through passing on the full 0.25% p.a. interest rate reduction.
“Our home loan customers can also take advantage of our lowest variable home loan rates in 50 years to help purchase their next home, or pay more off their mortgage faster.
“While this is the right decision, pricing changes are increasingly challenging as the cash rate heads towards zero. We will continue to review our rates on a case-by-case basis taking into account the diverse range of stakeholders and factors which influence the cost of funding,” Mr Lindberg said.