Westpac has followed ANZ, cutting its floating mortgage rates off the back of the Reserve Bank dropping the Official Cash Rate by 25 basis points to 2.50%.
However, although ANZ passed on the full -25 bps cut, Westpac is only passing on -15 of the -25 bps reduction to its clients on its main floating rate products.
Their Choices and Offset floating rates reduce from 6.00% to 5.85% while their revolving credit product Choices Everyday reduces to the same rate from 6.10%.
At the same time, it's knocked -15 basis points off its 2 Year Special fixed rate, taking it down to 4.24%, which is now the lowest two year rate offered by any bank.
Westpac's rate changes are effective for new customers on December 11, and existing customers on January 1.
ANZ has cut its floating home loan interest rates by -25 basis points to 5.74%, and its flexible home loan rate, also by 25 basis points, to 5.85%. The ANZ floating rate is now the lowest floating rate of any bank.
The new rates kick in for new ANZ floating rate home loan customers from December 14, but not until December 29 for existing floating rate and all flexible home loan customers.
The new floating mortgage rates now compare across all banks as follows:
|below 80% LVR||Floating||1 yr||18mth||2 yrs||3 yrs||5 yrs|
In addition, BNZ has a fixed seven year rate of 5.75%, while TSB Bank offers a fixed ten year rate also at 5.75%.