Westpac and subsidiaries offer lower P&I rates

Westpac and its subsidiaries have introduced lower principal-and-interest rates for new mortgage customers either by dropping rates or introducing discounts for new lending, according to Australian Broker.

Effective from October 23, Westpac has raised its discounts on its Flexi First Option Home Loan and Flexi First Option Investment Property Loan products.

These are two-year introductory offers:

  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 have no establishment fees, saving new borrowers $600. These changes will not impact Westpac’s interest-only mortgage products.

Westpac subsidiaries St George Bank, the Bank of South Australia (BankSA), and the Bank of Melbourne have also introduced promotional discount rates, also effective from October 23. 

Rates on the two-year Residential Investment P&I loan have decreased by 20 basis points, while the Basic Owner-Occupier P&I 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.