Westpac passes on full rate cut to offer 6.26% standard variable rate, but only from May 20
Westpac has joined the Commonwealth Bank and NAB by passing on the full rate cut to its borrowers, though they will have to wait a week longer for lower monthly repayments.
The bank's headline standard variable mortgage will be cut by 0.25% to 6.26% effective on May 20.
Both the Commonwealth Bank and NAB will pass on their full rate cuts on May 13.
The decision by three of the big four to pass on rate cut in full mean there has been no change in the rankings from lowest to highest standard variable rates, excluding ANZ, which only announces its decision on the second friday of the month, May 10.
Were ANZ to pass on 25 basis points to borrowers, its standard variable rate would be 6.15% meaning:
- NAB - 6.13% standard variable rate (May 13)
- CBA - 6.15% standard variable rate (May 13)
- ANZ - 6.15% likely standard variable rate (announcement on May 10)
- Westpac - 6.26% standard variable rate (May 20)
Westpac package home loan customers who receive a minimum 0.7% package discount on the headline standard variable mortgage will see their new effective rate fall to 5.56% per annum.
The reduction in home loan rates will save homeowners $48 a month or $576 a year in total monthly repayments on an average mortgage of $300,000.
“With headline mortgage rates now at their lowest level for three and a half years, we know this reduction is the kind of incentive our customers are looking for to make the most of the opportunities available in the housing market," says Jason Yetton, group executive of Westpac retail and business banking.
