Australia’s big banks are battling for new customers with Westpac slashing variable mortgages rates ahead of an expected official rate cut tomorrow.
Westpac, Australia’s second biggest lender, has cuts its variable rates by 40 basis points to 6.44 per cent.
This means borrowers won’t see a 40 basis point hike after the two-year introductory period has expired.
Westpac made the move on Monday, ahead of the Reserve Bank of Australia’s expected interest rate cut announcement on Tuesday afternoon.
The Big Four banks are universally expecting the RBA to cut rates for the first time since November 2020, and are preemptively reducing both variable and fixed mortgage rates.
Canstar data insights director Sally Tindall said the big banks were fighting for new customers, with big rate cuts expected in 2025.
‘The mortgage wars are set to re-ignite on the back of a RBA rate cut,’ she said.
‘The big banks will almost certainly pass the first RBA cut on in full to their variable rate borrowers, however, we could see some lenders cutting new customer variable rates even further to capitalise on what could become a refinancing revival.’
Australia’s big banks are battling for new customers with Westpac slashing variable mortgages rates ahead of an expected official rate cut
ANZ offers the lowest variable rate of 6.09 per cent, making it cheaper than the Commonwealth Bank’s 6.15 per cent rate.
NAB offers a 6.44 per cent and Westpac does now, too, for all borrowers with a 20 per cent mortgage deposit.
Australia’s Big Four banks, however, all offer lower three-year fixed rates, hoping to lock in borrowers before the RBA embarks on more rate cuts.
ANZ has the lowest three-year fixed rate of 5.74 per cent, making it cheaper than NAB’s 5.84 per cent and the Commonwealth and Westpac on 5.89 per cent.
