Westpac reduces short-term fixed-rate home loans
Westpac has cut its short-term fixed-rate home loans by up to 0.40 per cent. This follows similar cuts by other banks as the market adjusts to anticipated cash rate changes.
Westpac, the country's second-biggest lender, has today cut its short-term fixed-rate home loans. The cuts are up to 0.40 per cent for owner-occupier fixed loans and up to 0.35 per cent for investor loans.
The move means Westpac's lowest fixed rate is now 5.59 per cent for owner-occupiers paying principal and interest with a deposit of at least 30 per cent on a two-year term.
Related
Canstar data insights director Sally Tindall said the major bank now had the lowest advertised fixed loan out of the Big Four, but that didn't mean fixing was a competitive option for borrowers.
"CBA's half-yearly results, released today, illustrate just how unpopular fixing is. Only one per cent of new mortgages taken out with the bank in the last quarter of 2024 opted for a fixed rate, in dollar terms," Tindall said.
"While fixed rates can bring borrowers certainty, anyone who locks in their rate now will effectively be forfeiting their right to cash in on RBA cuts within their fixed rate term.
"After waiting well over a year for cash rate cuts to come, it's hard to see many borrowers tossing this opportunity in."
Do you have an interest rates story to share? Contact tamika.seeto@yahooinc.com
Banks move to cut fixed rates
The move comes after NAB cut its fixed rates last week, with cuts of up to 0.25 per cent for owner-occupiers and 0.30 per cent for investors.
AMP has also cut its one, two, three and five-year fixed rates by 0.25 per cent from today, while Macquarie dropped its one, two and three-year fixed rates by up to 0.15 per cent in January.
Westpac now has the lowest one, two, four and five-year fixed rates from the Big Four.
It also has the equal lowest one-year fixed rate, alongside Macquarie, at 5.69 per cent.
Tindall said the impending cash rate cut, along with an easing in the cost of wholesale funding, was pushing some banks to review their fixed rates with "more likely to follow".
Banks have also been moving on term deposits, with NAB and Commonwealth Bank cutting term deposit interest rates this week by as much as 0.20 and 0.15 per cent.
Warning against fixing too early
Tindall warned borrowers it could be worth waiting for rates to drop further before fixing.
