Westpac Group drop fixed home loan rates below 3%

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on August 22, 2019
Westpac Group drop fixed home loan rates below 3%

Image by David Gray via Adobe Stock

Australians are now being offered what are some of the lowest fixed mortgage interest rates in history, with Westpac subsidiaries dropping rates below 3%.

Westpac-owned St. George, Bank of Melbourne and BankSA have announced cuts to their fixed rate offerings of up to 135 basis points effective for new home loan applications received from 21 August.

Customers with bigger deposits are being rewarded with the lowest rates, with some rates as low as 2.94% p.a. for terms of up to five years, though the comparison rates do differ.

The biggest cuts were by St. George and Bank of Melbourne who cut their four and five-year fixed-rate loans for new owner-occupiers paying principal and interest by 135 basis points.

Looking for a low variable rate home loan? The table below displays owner-occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks. 

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
UNLIMITED EXTRA REPAYMENTS
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

    Variable
    More details
    EASY DIGITAL APPLICATION
    EASY DIGITAL APPLICATION

    Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

      Variable
      More details
      $0 APPLICATION FEE
      $0 APPLICATION FEE

      Budget Home Loan (Principal and Interest) (LVR < 80%)

        Variable
        More details
        100% FULL OFFSET ACCOUNT
        100% FULL OFFSET ACCOUNT

        Offset Package Home Loan (Principal and Interest) (LVR < 60%)

          Variable
          More details
          LIMITED TIME OFFER
          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services
          LIMITED TIME OFFER

          Smart Booster Home Loan Discounted Variable - 1yr

          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 3, 2022. View disclaimer.

          Despite recent sharp cuts to fixed rates, demand for fixed-rate home loans has continued to fall.

          According to the latest data from Mortgage Choice, demand for fixed-rate mortgages fell to 14% in July.

          Mortgage Choice CEO Susan Mitchell said even though there are good deals, she isn’t surprised amid expectations of further rate cuts to the cash rate from the Reserve Bank of Australia (RBA).

          “Despite some very attractive fixed-rate home loan pricing, borrowers across the country are reluctant to fix,” Ms Mitchell said.

          “It’s not entirely surprising that borrowers are choosing to keep their options open by opting for variable rate home loans. The reality is, the opportunity to save on repayments if the Reserve Bank cuts the cash rate is too good to pass up.

          “In the minutes of the RBA Board’s August meeting released yesterday, members judged it reasonable to expect that an extended period of low-interest rates would be required and suggested that further easing of monetary policy may be on the cards.”

          St. George fixed rate cuts

          St. George has made a number of big cuts of up to 135 basis points for owner-occupiers.

          • Four-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.76% p.a.)
          • Five-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.72% p.a.)
          • One-year fixed principal and interest 60% LVR has been cut by 105 basis points to 2.94% p.a. (comparison rate 3.90% p.a.)
          • Two-year fixed principal and interest 60% LVR has been cut by 15 basis points to 2.94% p.a. (comparison rate 3.85% p.a.)
          • Three-year fixed principal and interest 60% LVR has been cut by 25 basis points to 2.94% p.a. (comparison rate 3.81% p.a.)
          • Four-year fixed principal and interest 60-80% LVR has been cut by 135 basis points to 2.99% p.a. (comparison rate 3.81% p.a.)
          • Five-year fixed principal and interest 60-80% LVR has been cut by 135 basis points to 2.99% p.a. (comparison rate 3.77% p.a.)

          Bank of Melbourne fixed rate cuts

          Bank of Melbourne is rewarding borrowers with bigger deposits, slashing rates by up to 135 basis points.

          • Four-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.76% p.a.)
          • Five-year fixed principal and interest 60% LVR has been cut by 135 basis points to 2.94% p.a. (comparison rate 3.72% p.a.)

          If fixing for that long isn’t your thing, Bank of Melbourne also offer that interest rate across their one, two and three-year fixed terms, though the comparison rates do differ slightly.

          BankSA fixed rate cuts

          • Three-year fixed principal and interest $150k have been cut by 25 basis points to 2.99% p.a. (comparison rate 3.89% p.a.)
          • Two-year fixed principal and interest $150k have been cut by 15 basis points to 2.99% p.a. (comparison rate 3.94% p.a.)
          • Three-year fixed principal and interest has been cut by 25 basis points to 3.14% p.a. (comparison rate 4.64% p.a.)
          • Four-year fixed principal and interest has been cut by 15 basis points to 3.14% p.a. (comparison rate 4.50% p.a.)

          Disclaimers

          The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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          author-avatar
          William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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