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Westpac was forced to lower its variable interest rate by more than the latest cash rate reduction after being exposed as the major banks’ worst performer, 1300HomeLoan’s John Kolenda has claimed.
Westpac responded to the central bank's cutting official rates by 25 basis points to an all-time low of 2.5 per cent by lowering its advertised variable rate 28 basis points, to 5.98 per cent, in a bid to lift its sagging share of the mortgage market.
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Westpac apparently trumped National Australia Bank and the Commonwealth Bank, which lowered rates 25 points, to 5.88 per cent and 5.9 per cent respectively, while ANZ will show its hand today.
But Mr Kolenda said the network’s recently launched Australian Lenders’ Index - accessible via the website www.australianlendersindex.com.au – exposes Westpac as sitting on the bottom of the home finance lending ladder.
“The Australian Lenders’ Index has found that if you are a Westpac customer over the last five years, you have been delivered the most uncompetitive home loan compared to the other major banks,” Mr Kolenda said.
“Data from the index has found that while Westpac increased its package discounting in 2013, it has been consistently the worst performer for the past five years.”
Mr Kolenda said Westpac offered the highest interest rate of all major lenders for 29 out of the past 60 months, or 48 per cent of that period.
“Westpac is now blatantly playing catch-up to try and bridge the gap with the other major banks in order to boost market share,” he said.
