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

First published 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Keep in mind special offers can be withdrawn at any time.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*)

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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. He is also the co-host of the Savings Tip Jar podcast alongside Dominic Beattie. Prior to joining the group in 2020, Harrison has since 2015 been lending his expertise to other publications in mining, financial comparison, and traditional newspaper media.

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