Westpac has rolled out a slew of changes in its mortgage line-up, with the highlight being the two-year introductory rate of 1.99% p.a. for its Flexi First Option product.
The 1.99% p.a. rate is available for owner-occupiers paying on principal and interest rate (P&I) terms with a 70% loan-to-value ratio (LVR). The rate reverts to the standard variable rate after the period, which is currently at 2.09% p.a. (2.52% p.a. comparison rate*)
Flexi First Option is Westpac's version of a basic home loan with no fees for loan maintenance and redraws and no cap for extra repayments.
The bank also lowered the introductory rate for these products:
- Flexi First Option 2-Year Intro P&I 95% LVR - 20 bps to 2.09% p.a. (2.52% p.a. comparison rate*)
- Investment Flexi First Option 2-Year Intro P&I 70% LVR - 20 bps to 2.29% p.a. (2.80% p.a. comparison rate*)
- Investment Flexi First Option 2-Year Intro P&I 80% LVR - 20 bps to 2.39% p.a. (2.90% p.a. comparison rate*)
In addition to this, Westpac also made a 30bps hike to a range of its fixed-rate offerings with four- to five-year terms. The change applies to the following products:
- Premier Advantage Fixed Options
- Premier Advantage Investment Fixed
- Investment Fixed
- Fixed Options
Here are the other lenders who made some changes and adjustments to their rates over the week:
Reduce Home Loans slashes fixed rates
Reduce Home Loans announced a 10bps cut across the revert rate of its Ezy SMSF Metro Fixed products. The rate now stands at 3.69% p.a.
It also made some changes to the rates under the Ezy SMSF Metro line-up, which include:
- Ezy SMSF Metro Fixed 5 yrs P&I =60% - 3.39% p.a.
- Ezy SMSF Metro Fixed 4 yrs P&I =60% - 4.29% p.a.
- Ezy SMSF Metro P&I =60% - 3.59% p.a. (3.68% p.a. comparison rate*)
- Ezy SMSF Metro P&I 65-70% - 2.69% p.a. (3.78% p.a. comparison rate*)
Greater Bank lowers revert rates
Greater Bank has reduced the revert rate of its Ultimate Discount and Great Rate Discount Investment products. The new revert rates^ are as follows:
- Great Rate Discount Investment Fixed P&I - 2.59% p.a.
- Great Rate Discount Investment Fixed IO - 2.69% p.a.
- Ultimate Discount Fixed P&I - 2.75% p.a.
- Ultimate Discount Fixed IO - 2.85% p.a.
- Ultimate Discount Investment P&I Fixed - 2.79% p.a.
- Ultimate Discount Investment IO Fixed - 2.89% p.a.
^These rates are as of 24 August.
Bank of Melbourne increases fixed rates
Bank of Melbourne introduced a 30bps hike to its Advantage Package Residential Fixed and Advantage Package Investor Fixed line-up.
Some changes are the following:
- Advantage Package Inv Fixed IO 4-5 yrs 80% LVR - 3.24% p.a.
- Advantage Package Residential Fixed P&I 4 yrs >80%LVR - 2.59% p.a. (3.45% p.a. comparison rate*)
- Advantage Package Residential Fixed P&I 5 yrs >80% LVR - 2.89% p.a. (3.52% p.a. comparison rate*)
- Advantage Package Portfolio Loan Fixed 4-5 yrs - 3.29% p.a.
These changes also apply to St.George Bank and BankSA.
Collections: Mortgage News
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