Westpac cuts variable mortgage rates, now lowest in Australia

Westpac has cut its variable mortgage rates, making it more competitive among Australia's major banks. The bank lowered its Flexi First Option special mortgage rate by 35 basis points to 5.84 percent. This new rate is now the lowest among the Big Four banks. The decision follows a recent cut by the Reserve Bank of Australia. It aims to attract new borrowers, particularly those who can make a larger deposit of 30 percent. Sally Tindall from Canstar noted that Westpac is now competing closely with ANZ, which offers an online-only loan with the same rate but requires only a 20 percent deposit. In comparison, the Commonwealth Bank’s top rate stands at 5.9 percent, but requires a higher deposit of 40 percent. NAB is offering a variable rate of 6.19 percent and requires only a 5 percent deposit. Other lenders in the market have even lower rates, starting from 5.64 percent. Despite the ongoing competition, economists predict that the Reserve Bank will keep interest rates steady at 4.1 percent during its next meeting. A potential rate cut is expected on May 20, following the release of new inflation data.