An Australian bank has just announced a new variable rate and commented on Westpac Bank’s recent rate hike.
Auswide Bank today announced a variable home loan interest rate of 3.98 per cent.
The discounted rate is available on new owner-occupied principal and interest home loans of $150,000 or more with an LVR of equal to or less than 80 per cent. A discounted rate of 4.19 per cent is also available for owner-occupier home loans over 80 per cent up to 90 per cent LVR.
Auswide Bank’s announcement follows last week’s announcement from Westpac Bank that it will increase interest rates on home loans, with some other banks expected to follow suit.
Auswide Bank managing director, Martin Barrett, said the timing of the Auswide’s rate announcement is no accident.
“Westpac Bank’s increase was totally unexpected by their customers,” Mr Barret said.
“I’d expect that they are pretty upset right now, especially given the size of Westpac’s annual profit.
“If other banks follow suit, I think there will be a whole lot more disgruntled borrowers especially given the big four own about 80 per cent of home loans in Australia. Now is the time for customers of the big four banks to stop being taken for granted and move to a bank that appreciates its customers.”
[Related: ME slashes rates by 40 basis points]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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