Westpac Follows Suit in Cutting Mortgage and Term Deposit Rates

Date Published: 9 February 2024

Key Facts

• Westpac is reducing a range of its interest rates, following the trend of other major banks.
• A fortnight ago, ASB, another significant competitor, reduced several mortgage rates, following a series of cuts within the sector in December.
• Westpac’s special fixed home loan rates for one, three, four and five years will reduce by 10 basis points, and the 18-month special fixed home loan rate will decrease by 20 basis points.
• The same reduction will apply to Westpac’s standard fixed home loan rates.
• Westpac has also cut numerous term deposit rates, with decreases of 10 to 30 basis points for all durations between 12 months and five years.

Article Summary

Westpac has made a public announcement detailing a reduction in many of its interest rates, joining other large banks who have recently done the same. Notably, ASB, a main rival, put into effect a cut on several mortgage rates around two weeks ago, following a slew of equivalent cuts made within the industry last December.

This recent announcement involves the lowering of Westpac’s special fixed home loan rates for durations including one, three, four and five years by 10 basis points. The 18-month special fixed home loan rate is to be cut slightly more significantly, by 20 basis points. The same reductions will also apply to the bank’s standard fixed home loan rates.

In response to these changes, the bank’s General Manager of Product, Sustainability, and Marketing, Sarah Hearn, acknowledged that while the rate cuts will be good news for many, customers re-fixing loans from historically low rates may still find expenses mounting. To combat these concerns, the bank is actively reaching out to home loan customers who may be confronting financial struggles, to offer support and explain their options.

Simultaneously, Westpac is lowering a number of term deposit rates, implementing drops of 10 to 30 basis points relevant to all term durations between 12 months and five years. This is another example of changes that the bank is making which will affect its customers’ finances.

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