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Big banks join low rate mortgage war

Westpac announces new low rates & first major regional bank goes under 3%


9 September 2019

Big banks join low rate mortgage war

Westpac announces amazing new low rates and first major regional bank goes under 3%*

Westpac slashes home loan rates by up to 1.30%.

Westpac has announced out-of-cycle variable and fixed home loan rate cuts for owner-occupiers and investors taking its lowest advertised rate to just 3.24 per cent pa.

And Australia’s biggest mutual bank, Heritage Bank, has announced a new fixed rate under 3 per cent.

These big cuts follow the growing number of online non-bank lenders announcing extraordinary low home loan rates, many under three per cent p.a.

The new lowest advertised home loan rate now listed by InfoChoice is 2.74 per cent pa on a two-year fixed loan (Comparison rate 2.96%) and three-year fixed loan (comparison rate 2.94% pa) from Well Home Loans.

“The rates from the online lenders are too low to ignore,” said Vadim Taube CEO of leading Australian financial comparison site InfoChoice.com.au.

“And the big banks aren’t ignoring them, they are reacting by cutting their own rates.

“Competition in the mortgage market is heating up and borrowers can get amazing low rates by researching the good deals.”

Westpac have delivered an effective 0.15 per cent rate cut on their low rate basic mortgage product, the Flexi First Option Loan by increasing an existing discount offer.

The new Flexi First Option variable rate (P&I) is 3.43 per cent pa (comparison rate 3.44 per cent pa). For LVRs under 70 per cent, the Flexi Option rate is 3.38 per cent pa (comparison rate 3.39 per cent pa).

Westpac’s new 12-month fixed Flexi Option (P&I) rate is 3.29 per cent pa (comparison rate 4.05 per cent pa). That is a 0.80 per cent cut from the previous 12-month fixed rate of 4.09 per cent.

Westpac’s 12-month rates now start at 3.24 per cent pa (comparison rate 4.01 per cent) on a packaged loan up to 70% LVR.

Westpac’s Will Ranken, General Manager Home Ownership told InfoChoice:


“Today’s changes provide a competitive offering for both property investors and owner occupiers.


“The current low interest rate environment is driving competitive offers for home buyers, which coupled with the new home loan incentives and discounts available may make it an appealing time for Australians to start thinking about purchasing a home.”


Heritage Bank has reduced fixed rate home loan rates by up to 0.30 per cent and some owner occupier rates by up to 0.10 per cent. Investor variable interest rates have come down by up to 0.15 per cent.

Heritage’s lowest rate is now 2.99 per cent pa (comparison rate 6.67 per cent pa) on the Home Advantage Package three-year fixed rate for owner-occupied (P&I).

How many lenders are offering home loan rates under 3%?

Loan type

Lenders offering <3% on home loans

Lowest rate in market

Lowest Big Four bank home loan rate


2 lenders

(5 loan products)

2.89% pa (CR 2.90%)

from Reduce Home Loans

3.35 % pa (CR 3.39%)

NAB Base variable (P&I, 80% P&I)

12m fixed

9 lenders

(13 loan products)

2.79% pa (CR 3.95%)

from Greater Bank

3.24% pa (CR 4.01%) Westpac First Options (packaged)

2y fixed

13 lenders

(21 loan products)

2.74% pa (CR 2.96%)

from Well Home Loans

3.09% pa (CR 4.49%) NAB National Fixed Choice (P&I, first home buyer special)

Fixed rate loans

3 year fixed

20 lenders

(29 loan products)

2.74 % pa (2.94% pa)

from Well Home Loans

3.23% pa (CR 3.94%)

Westpac Fixed Option (packaged LVR <70%)



For more information, please contact:

Jason Bryce, Media Manager on 0428 777 727 jason.bryce@infochoice.com.au


For more comments, please contact:

Vadim Taube, Chief Executive on 0403 580 794


Keep up to date with the latest RBA rates outlook at InfoChoice.


* InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.


** Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan


***Excludes accounts with introductory honeymoon maximum bonus rates, notice saver accounts and accounts that are not generally available to all Australian residents


InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.


At InfoChoice, we strive to be:

•           Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

•           Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.