Westpac joins CBA and other lenders to cut fixed rates

Richard Whitten 11 April 2019 NEWS

Woman with a pen and calculator. Image: Getty Images

Fixed rate mortgages from a range of lenders are now very competitive.

Westpac has announced rate cuts of up to 20 basis points on some of its fixed rate mortgages. Bendigo Bank will cut rates on some of its products too. Both cuts take effect on Friday 12 April.

The Commonwealth Bank cut rates on a range of its fixed rate loans on Tuesday.

Westpac's move means that three of the Big Four banks have made significant rate cuts this year, with NAB lowering many of its fixed and interest only rate loans in March.

ANZ lowered its Simplicity Plus interest only investor rate by 16 basis points in mid-March, but that was its only rate move.

There have been rate moves up and down in recent months.

Suncorp, ME Bank, Macquarie Bank, loans.com.au and Adelaide Bank lowered rates on a range of fixed and variable rate products. Bank of Queensland, ING and AMP have both cut and raised rates on various products.

Some notable rate changes

  • Commonwealth Bank Wealth Package Fixed Home Loan – 3 Year Fixed (Owner Occupier, P&I) moved from 3.89% to 3.79%.
  • Commonwealth Bank Fixed Rate Home – 5 Year Fixed Rate (Owner Occupier, P&I) moved from 4.54% to 4.24%.
  • Commonwealth Bank Wealth Package Fixed Home Loan – 2 Year Fixed (Investor, P&I) moved from 3.99% to 3.89%.
  • Westpac will cut rates on its Fixed Options and Fixed Rate investment loans by 10-20 basis points.

More rate cuts to come?

Mortgage interest rates have been very low for a few years now. This is partly a result of increasing competition and because the Reserve Bank has kept the cash rate at historic lows for over two years now.

But lenders large and small have increased some of their rates in recent months, often citing increased funding costs (the costs associated with getting the money together to cover a loan) as the reason.

While variable rates are still typically lower, fixed rates in particular have become more competitive recently.

The lowest variable rate currently available on Finder is 3.48%. The lowest 3 year fixed loan is 3.58%. Both are loans.com.au products.

If you want to see more of the lowest rates month by month, check out our lowest monthly rates tracker.

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