Australia’s second largest bank, Westpac, has cut its basic variable rate to 2.69 per cent, but the offer is solely reserved for new customers with a deposit of more than 30 per cent.
Westpac’s new rate is now the lowest variable home loan offered by a big four bank.
Westpac Flexi First Option Home Loan changes:

Other brands under the Westpac banner including St George, Bank of Melbourne and BankSA also cut several new customer rates:
- St George and Bank of Melbourne are now offering variable rates from 2.59 per cent for new customers with a 60 per cent LVR (0.10 per cent cut).
- BankSA is offering variable rates from 2.64 per cent for new customers (0.10 per cent cut).
The changes come as Westpac Group posted a drop in their home loan book, according to APRA’s monthly banking statistics for April 2020 (released May 29).
RateCity.com.au research director Sally Tindall said the cuts from Westpac weren’t unexpected.
“Yesterday Westpac had the highest basic variable rate out of the big four banks. Today it has the lowest,” she said.
“Today’s rate cut is designed to get new business in the door. Westpac Group’s home loan book has fallen month-on-month, according to the latest APRA statistics. They need new customers to keep moving in the right direction.
“While these rate cuts are reserved for new customers, if you’ve already got a loan with Westpac you can still pick up the phone and ask for a rate cut. If you’re paying more than what the bank is offering new customers for exactly the same loan, you’ve got the perfect bargaining chip.”
Today’s rate cuts are further evidence of the competitiveness of the market.
“Increasingly banks are reserving their lowest rates rates for new customers who have a decent amount of equity up their sleeve,” she said.
“The three lowest variable rates on the RateCity.com.au database are reserved for owner occupiers, paying principal and interest who have at least 30 to 40 per cent deposit.
“If you’re an owner-occupier who has made decent headway into your loan and still has a steady job, you are in the driver’s seat in this current market,” she said.
Lowest variable rates on RateCity.com.au

Big Four Bank lowest rates

APRA monthly banking statistics: Loans to households: home loans
