Westpac has reduced fixed mortgage interest rate, because the large banks are fighting for new customers prior to an expected official rate reduction next week.
The second largest lender in Australia has reduced its shorter fixed mortgage interest rate in a sign that the large banks expect steep spare bank rate in 2025.
A year of fixed rates have been reduced to 5.69 percent with 40 basic points, while the two -year -old fixed rates of Westpac have fallen by 30 basic points to 5.59 percent.
Both fixed rates are much lower than the introductory variable percentage of Westpac of 6.44 percent.
Westpac has reduced its fixed mortgage interest rate only one week after NAB has also reduced his fixed rates.
Canstar Data Insights Director Sally Tindall said that the large banks competed for new customers, where the Big Four Banks all expect a spare bank rate on Tuesday next week.
“A reduction in cash rates is approaching quickly, possibly as fast as next Tuesday,” she said.
“This, in addition to a relaxation of the costs of wholesale financing, now pushes some banks to revise their fixed rates, with a better chance of following.”
Westpac has reduced fixed mortgage interest rate, because the large banks are fighting for new customers prior to an expected official rate reduction
Westpac and the Commonwealth Bank both expect the reserve bench to lower the interest rates four times in 2025.
This would go back to 3.35 percent for the first time since March 2023, of an existing level of 4.35 percent.
Mrs Tindall said that borrowers who have now locked a fixed rate could eventually miss more generous lighting, because RBA speeds led to lower variable rates.
Borrowers who want to reach a fixed rate should pay a big break allowance for a lower variable rate in the thousands of dollars.
“Although fixed rates can provide the certainty of borrowers, everyone who now locks his rate will effectively forfeit their right to redeem RBA reductions within their fixed rate period,” Tindall said.
“After waiting for more than a year to come to the cutbacks at the cash rates, it is difficult to see many borrowers throw this opportunity.”
Westpac and Macquarie Bank now offer the lowest fixed rate of 5.69 percent.
But smaller lenders Bank Vic, Community First and Easy Street offer the lowest fixed rate of two years of 5.49 percent.
Australian Mutual offers the lowest fixed percentage of fixed percentage of 5.49 percent, while Newcastle permanently offers the lowest four and five-year fixed rate of 5.59 percent.
Under the Big Four Banks, Westpac offers the lowest fixed rate of two years of 5.59 percent, while Anz has the lowest fixed percentage of three years of 5.74 percent.
The second largest lender of Australia has reduced its shorter fixed mortgage interest rate in a sign that the large banks expect steep reserve bank rate in 2025 (depicted Sydney's Pitt Street Mall)
