As predicted, lenders are now falling over themselves to offer new low-rate loans to attract business, in the run up to Christmas, utilising the war chests they created earlier in the year when many rates, especially investment loan books were repriced up. Even some loans to investors are being cut (but not for existing customers of course!)
This from Australian Broker, summarises some of the recent moves:
Several banks have introduced lower principal and interest rates for new mortgage customers either by dropping rates or introducing discounts for new lending.
Effective from 23 October, Westpac has brought in better discounts on its Flexi First Option Home and Investment Property Loan products.
This is a two-year introductory offer which increases the discounts as follows:
| Old discount | New discount | 2-yr intro rate | Base rate | Comparison rate | |
| Flexi First Option Home Loan | 0.71% p.a. | 0.84% p.a. | 3.75% p.a. | 4.59% p.a. | 4.44% p.a. |
| Flexi First Option Investment Property Loan | 0.96% p.a. | 1.15% p.a. | 3.99% p.a. | 5.14% p.a. | 4.93% p.a. |
Both loans come with no establishment fee, saving new borrowers $600. These changes will not affect Westpac’s interest only mortgage products.
Westpac subsidiaries, St George, BankSA and Bank of Melbourne, have also introduced promotional discount rates, effective from 23 October.
Rates on the 2 Year Residential Investment Principal & Interest loan have decreased by 20 basis points while the Basic Owner Occupier Principal & Interest Promotional Rate has dropped by two basis points:
| Old rate | Change | New rate | Comparison Rate | |
| 2 Year Residential Investment P&I loan | 4.34% p.a. | -0.20% | 4.14% p.a. | 5.63% p.a. |
| Basic Owner Occupier P&I Promotional Rate | 3.80% p.a. | -0.02% | 3.78% p.a. | 3.79% p.a. |
Finally, Bankwest has also introduced lower P&I rates for new owner occupied and investment lending on its Complete Variable and Premium Select Home Loans products. These changes came into effect on 20 October.
| Borrowings | Old rate | New rate | Comparison rate | |
| Complete Variable Home Loan | ||||
| Owner occupied | $200k+ | 3.92% p.a. | 3.79% p.a. | 4.22% p.a. |
| Investor | $200k – $749k | 4.49% p.a. | 4.39% p.a. | 4.81% p.a. |
| $750k+ | 4.39% p.a. | 4.29% p.a. | 4.71% p.a. | |
| Premium Select Home Loan | ||||
| Owner occupied | $20k+ | 4.09% p.a. | 3.99% p.a. | 4.01% p.a. |
| Investor | $20k – $749k | 4.59% p.a. | 4.49% p.a. | 4.51% p.a. |
| $750k+ | 4.49% p.a. | 4.39% p.a. | 4.41% p.a. | |
