Westpac matches ANZ’s low variable rate as mortgage wars heat up
Petrol has been poured on Australia’s mortgage wars thanks to a big four bank’s move amid jostling to “steal customers”.
Westpac, Australia’s second biggest home loan lender, has matched competitor ANZ by offering a low variable rate of 5.84 per cent.
The Flexi First Option is only available to owner-occupiers paying principal and interest with a deposit above 30 per cent. You will also have to apply directly to Westpac online.
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By continuing you agree to our Terms and Privacy Policy.The new rate is 0.35 percentage points lower than Westpac’s previous low variable offering of 6.19 per cent. Its other home loan rates remain unchanged.
“Three of the big four banks are now in a digital arms race, jostling to steal customers from each other but only those customers willing to apply digitally,” Canstar data insights director Sally Tindall said.
“This move from Westpac is a sign the refinance market is coming back to life. However, the banks are now laser focused on winning over ‘desirable’ borrowers – those with big deposits and who are willing to switch online.”
Savings can be found if you are willing to switch from the big four, with more than 35 low-cost lenders offering at least one variable rate under 5.75 per cent.
“This is great news for people with a home loan. However, the rock-bottom rates are reserved for new customers with decent sized deposits so they will need to switch lenders or at least haggle if they want to be a winner in the refinance war,” Tindall said.
The lowest advertised rate is 5.64 per cent, which is available from Pacific Mortgage Group, People’s Choice, RACQ Bank, The Capricornian and Australian Mutual Bank.
New data from the ABS found more than $206 billion worth of home loans were refinanced in 2024, and that could grow off the back of Reserve Bank’s February rate cut.
Canstar said customers could save themselves thousands in interest charges by making the switch, but borrowers should weigh up their own circumstances.
The Reserve Bank will next meet to consider the cash rate at the end of March, days after Treasurer Jim Chalmers hands down Australia’s federal budget on March 25.
Originally published on 7NEWS
