For Westpac the cuts are a 30 basis point reduction off the old rates, while for subsidiaries it's 20 basis points.

Westpac's details are as follows:

  • Inv Flexi First Option 70% LVR: Down to 2.99% p.a. (3.00% p.a. comparison rate*)
  • Inv Flexi First Option 80% LVR: Down to 3.09% p.a. (3.10% p.a. comparison rate*)

Similar products' interest rates were cut across the subsidiaries, however individual interest rates could differ, with more details below.

These reductions are 'special offers' meaning they could be withdrawn at any time.

Cutting interest rates on interest-only loans has been emerging trend of late, with ING and Gateway Bank doing so earlier in September.

Westpac's latest rate changes follow various rate changes made to owner occupier loans at the end of August.

Interest-only payments apply for the life of the loan, which could be favoured by investors able to pay interest-only then pay off the loan with proceeds from the home sale, provided it increases in value.

St George changes

  • Investment Basic Variable IO 60%: 20 basis point cut to 2.74% p.a. (2.76% p.a. comparison rate*)
  • Investment Basic Variable IO 80%: 20 basis point cut to 2.79% p.a. (2.81% p.a. comparison rate*) 

Bank of Melbourne changes

  • Investment Basic Variable IO 60%: 20 basis point cut to 2.74% p.a. (2.76% p.a. comparison rate*)
  • Investment Basic Variable IO 80%: 20 basis point cut to 2.79% p.a. (2.81% p.a. comparison rate*) 

BankSA changes

  • Investment Basic Variable IO 80%: 20 basis point cut to 2.79% p.a. (2.81% p.a. comparison rate*) 

The home loan rates across the group are available for new lending and external refinances, but exclude internal refinancing from the group, which also includes RAMS.

Photo from Piqsels





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