Westpac, St George cut to 'lowest ever' home loan rates

author-avatar By on March 10, 2021
Westpac, St George cut to 'lowest ever' home loan rates

Westpac is now offering the lowest fixed home loan rate for two years.

Westpac, St George and other subsidiaries made sizable rate cuts, with the lowest Westpac home loan now having an advertised interest rate of 1.79% p.a.

The home loan in question is a 'Premier Advantage' packaged loan, paying principal and interest (P&I), fixed for two years for owner occupier borrowers with 70% LMI.

It was cut by 20 basis points, and has a 3.37% p.a. comparison rate.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

It appears the same cuts were made across the Westpac subsidiaries St George, Bank of Melbourne, and BankSA, however check the individual lenders' finer details and comparison rates for differences.

For example, the equivalent home loan in St George's case has a maximum LVR of 60%, and a comparison rate of 3.33% p.a.

St George, Bank of Melbourne, and BankSA also have a $4,000 cashback offer for borrowers applying to certain home loans by 31 March.

In Westpac's case, three-year packaged loans were also cut by 11 basis points. 

The Premier Advantage loan paying P&I, fixed for three years with 70% LVR was cut to 1.88% p.a. (3.28% p.a. comparison rate*).

The equivalent loan but for borrowers up to 95% LVR, the rate is 1.98% p.a. (3.38% p.a. comparison rate*).

Westpac's 'Premier Advantage' package loan waives fees for loan maintenance, 'top up' fees, portability or switching fees, as well as no service fee on Westpac Choice accounts (usually $5), plus no annual fee on some credit cards and discounts on selected insurance products.

What about investors? 

No home loan by the Westpac amigos under 2% yet, but some investment home loans were slashed nonetheless.

The Premier Advantage packaged loan for investors, fixed for two years paying P&I with 70% LVR was cut by 20 basis points to 2.19% p.a. (3.87% p.a. comparison rate*).

The equivalent loan but for borrowers with 80% LVR was cut by 20 basis points to 2.29% p.a. (3.97% p.a. comparison rate*). 

More to come...


Photo by Scott Lewis on Flickr

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*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.

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author-avatar
Harrison joined Savings in 2020. He is an experienced journalist, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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