Westpac is now the second bank to cut home loan rates following the Reserve Bank yesterday cutting official cash rates. Westpac has cut 65 basis points off their variable mortgage rate, bringing it down to 7.71 per cent, effective from Monday 10th November.
Yesterday the RBA cut official rates down to 5.25%, a reduction of 75 basis points, and within minutes Commonwealth Bank of Australia announced a cut of 58 basis points to their variable rate mortgage.
Treasurer Wayne Swan wants the banks to pass on this latest rate cut in full.
Mr Swan urged banks to think of their customers and pass on the latest official interest rate cut in full.
"There have been cuts in the official rate of 200 basis points in the last couple of months and all of those have been passed on prior to this latest 75 basis point cut."
"I would hope that all banks think of their customers and pass on this latest cut in full."
NAB, ANZ and St George are yet to announce any reduction in home loan rates, saying they are currently under review.
This is the third consecutive rate cut from the RBA. In October there was a shock one per cent cut, and in September a cut of 0.25 per cent, making a total 2 per cent reduction, saving home owners more than $200 per month on a $250,000 mortgage.
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