Westpac is lowering it's fixed mortgage interest rates by 30 basis points as of this week. Rates will fall for both new and existing customers by between 0.2 percentage points and 0.3 percentage points. The new rates are available to new mortgage customers wanting a fixed rate and existing customers wanting to shift to a fixed rate mortgage.
Westpac has seen a decline in its short term funding costs measured by the 90 day bank bill rate, enabling the savings to be passed on, a Westpac spokesman said.
"Fixed rate loans are set against the yield curve so as you see declines in short term funding - in the 90 day bank bill rate - you can pass on those savings, which we do. It's something we're continually looking at."
Westpac has cut rates three times since July and the moves combine to a 1.3 per cent drop in the banks fixed rate. A Wespac spokesman has said that credit card rates are still under review.
Last week, all the major banks along with most non-bank lenders dropped interest rates on both fixed and variable rate loans.
Last Thursday ANZ said it will drop its fixed interest mortgage rates for new customers by up to 0.2 per cent on Monday.
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