Home News Westpac slashes home loan rates, HSBC edges closer to 1%

Westpac slashes home loan rates, HSBC edges closer to the 1% mark

Westpac slashed rates on some home loans today by up to 24 basis points, while HSBC cut one home loan rate down to 2.09% p.a. on Monday.

By Harrison Astbury

on 05 Jun 2020

Westpac slashes home loan rates, HSBC edges closer to the 1% mark

Photo by Scancode Productions on Unsplash

After its big four compatriots NAB and ANZ announced some rate movements two weeks ago, Westpac has joined the cutting party.

Westpac's biggest cuts were to its 'Flexi First Option' home loan, as a special offer, from 15 to 24 basis points. The details are:

Flexi First Option P&I 70%: 24 basis point cut to 2.69% p.a. (2.70% p.a. comparison rate*)
Flexi First Option P&I 95%: 24 basis point cut to 2.79% p.a. (2.80% p.a. comparison rate*)
Investment Flexi First Option P&I 70%: 15 basis point cut to 3.09% p.a. (3.10% p.a. comparison rate*)
Investment Flexi First Option P&I 80%: 15 basis point cut to 3.19% p.a. (3.20% p.a. comparison rate*)

Westpac also made cuts to various 'Premier Advantage' fixed packaged home loans by up to 20 basis points.

Keep in mind special offers can be withdrawn at any time.

Market-wide, banks are edging ever closer to the elusive home loan that starts with a 1.

On Monday, HSBC cut its residential home loans fixed for two years paying principal and interest (P&I) down to 2.09% p.a (2.98% p.a. comparison rate*)

This represents a cut of 16 basis points.

Borrowers must have a maximum loan to value ratio (LVR) of 80% i.e. a 20% deposit.

Elsewhere, it was a fairly subdued week for home loan rate changes, with Bankwest and Bank Australia being two other major players to cut.

Bankwest home loan rate changes

Bankwest made a couple of cuts to fixed home loans for owner occupiers paying P&I:

Complete Home Loan Fixed Rate 2 Years: 45 basis point cut to 2.24% p.a. (3.57% p.a. comparison rate*)
Fixed Rate 2 Years: 45 basis point cut to 2.44% p.a. (4.39% p.a. comparison rate*)

Bank Australia home loan rate changes

Bank Australia made quite a few cuts to home loans by 50 basis points for both owner occupiers and investors willing to fix for five years. Some key cuts are:

Basic Fixed 5 Years 70% LVR: Down to 2.84% p.a. (3.10% p.a. comparison rate*)
Residential Premium Package 5 Years 70-90% LVR: Down to 2.79% p.a. (3.38% p.a. comparison rate*)
Inv Basic Fixed 5 Years 80% LVR: Down to 3.14% p.a. (3.35% p.a. comparison rate*)

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

Loan amount

Compare

Lender	Advertised rate	Comparison rate*	Monthly repayment	Rate Type	Ongoing Fee	Upfront Fees	LVR	as ofDecember 11, 2023

	6.04^%_p.a.	6.06^%_p.a.	^$2,408	Variable	^$0	^$530	90^%	More details
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase	loans.com.au – Variable Home Loan (LVR < 90%)
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase loans.com.au – Variable Home Loan (LVR < 90%) More details
	6.09^%_p.a.	6.11^%_p.a.	^$2,421	Variable	^$0	^$250	60^%	More details
FEATUREDUnlimited Redraws	ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%) No annual fees – None! Get fast pre-approval Unlimited additional repayments free of charge Redraw freely – Access your additional payments when you need them Home loan specialists available today
FEATUREDUnlimited Redraws ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%) No annual fees – None! Get fast pre-approval Unlimited additional repayments free of charge Redraw freely – Access your additional payments when you need them Home loan specialists available today More details
	7.24^%_p.a.	7.24^%_p.a.	^$2,726	Variable	^$0	^$160	80^%	More details
	ANZ – Standard Variable Home Loan (Principal and Interest) (LVR < 80%)
ANZ – Standard Variable Home Loan (Principal and Interest) (LVR < 80%) More details

Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

Product Features

Immediate cashback upon settlement
$2000 for loans up to $700,000
$4000 for loans over $700,000

Monthly repayments:$2,408

6.04%Advertised Rate (p.a.)

6.06%Comparison Rate*

More details

Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 December 11, 2023. View disclaimer.

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Harrison Astbury

Harrison is Savings.com.au's Assistant Editor, and also Editor & Research Analyst of sister comparison site InfoChoice.com.au. Prior to joining Savings Media Group in January 2020, he worked for some of Australia's largest comparison sites and media organisations, and has key interests in housing policy, real estate, and niche topics such as the gold standard.

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