Westpac's new 'Flexi First Option' digital mortgage will be available in the final quarter of 2022 for those refinancing, before being expanded to more customers throughout 2023.
Westpac notes the offer will initially be available for new and existing customers looking to refinance their owner-occupied variable-rate home loan to Westpac’s Flexi First Option through the Westpac website or banking app.
Customers will be required to have 20% equity in the property and receive a PAYG income, with further details including interest and comparison rates to come once the new product becomes live.
The launch of Westpac's 'Flexi First Option' home loan signals Westpac's intention to become a digital-first bank.
Westpac Group CEO Peter King said the changes are being driven by customers who want banking services that are fast, secure, and personalised to meet their needs.
"What we are announcing today is a step towards our future banking network and service model," Mr King said
"We are investing to create a digital first bank, where customers can choose to interact with us through online channels from start to finish."
Westpac aims to replicate the likes of digital lender Nano with a digital mortgage process where customers can gain unconditional approval for refinancing in as little as 10 minutes.
The launch of Westpac's new digital home loan follows the trend for emerging lenders, with Up Bank, Unloan and OneTwo all launching home loan refinance products over the past few months.
Further, lending indicator data released earlier this month by the ABS revealed mortgage refinance numbers increased significantly from April for both owner occupiers and investors completing internal and external refinances.
Westpac to integrate sub-brands into branch network
Alongside the launch of Westpac's new digital home loan product, the major bank revealed St.George, BankSA and Bank of Melbourne customers will be able to complete cash transactions at any Westpac branch for the first time.
Westpac customers will also be able to bank at any regional Westpac Group branch.
"The co-location approach enables us to move two branches into one single location in cases where the two buildings are located very close together," Mr King said.
"This maintains a physical presence for customers and signals a long-term investment in communities, while reducing footprint duplication in the same location.”
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
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6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | Featured Online ExclusiveUp To $4K Cashback |
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5.99% p.a. | 6.51% p.a. | $2,589 | Principal & Interest | Variable | $0 | $530 | 90% |
Image by Westpac.
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