Westpac 2.29% Variable Rate Home Loan (New Customers, Discount for 2 Years Only)

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      smeng on 24/09/2020 - 11:13

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      hi do you mind telling me who this is with thanks

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  Oliver on 22/09/2020 - 21:05

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  as far as i understand you really should be comparing "comparison rates" because those are the rates they calculate once they've taken all the fees into account so that you can literally compare like for like i.e. the final price between banks.

  per your rate rank site:

  Westpac rate2.29 comparison rate2.72

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    ely on 23/09/2020 - 07:09

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    You understand incorrectly. Comparison rates don't take into account the amount you're actually borrowing, so the fees are calculated as percentages of a $150k loan over a 25 year period. These days most loans are significantly larger and are over 30 year periods and, as such, the comparison rate is unlikely to accurately reflect the effective rate for most loans. Use them if you happen to be borrowing $150k for 25 years, otherwise ignore them entirely and run the actual numbers yourself.

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      silo on 23/09/2020 - 15:25

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      It's frustrating to see how many people don't seem to understand this. Unless if you're borrowing a small amount, comparison rates don't mean much.

      Here's an example:
      Say the interest rate for product A is 3% and total annual fees are $1,000.
      On a $150K loan, the total annual interest and fees would be $5,500. That gives a comparison rate of 3.67%.
      A $1.5m loan, would give $45k which gives an effective rate of 3.07%

      Now compare that to product B with a 2.90% rate but higher fee of $1,250.
      $150k - $5,600 - 3.73%
      $1.5m - $43,500 - 2.98%

      The comparison rate for product A seems to be better, but as you can see that's only the case for a small loan which is what the comparison rate is based on.

      … And that's ignoring the term of the loan

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  payless69 on 23/09/2020 - 11:36

  Snap!

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  lgacb08 on 25/09/2020 - 11:01

  Note that this product does not offer offset account like a full feature loan, so might be better go somewhere else for better rate and a redraw facilities.

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  22slurpee on 29/09/2020 - 18:46

  Pretty good deal, description should state the 3k cashback offer as well as the ability to have an offset account with the Premier Advantage Package at $395 per year.

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    atlinus on 30/09/2020 - 09:02

    Premier advantage also at 2.29% and pay $395/yr?
    With 3k for new or refinance?

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      22slurpee on 30/09/2020 - 11:10

      Yeah that's it, better rate than the St George 4k offer

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        mocha_latte on 07/10/2020 - 23:46

        Premier Advantage is for their higher-rate loan product (the "Rocket Repay"). I don't think you can package the lower-rate loan product (the "Flexi First Option")?

        https://www.westpac.com.au/personal-banking/home-loans/home-…

        Under the Benefits tab, you'll see: Link as an offset account to your Rocket Repay Home Loan and cut the interest on your loan.

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  atlinus on 30/09/2020 - 09:03

  I heard last night on news of a possible rate cut around the corner as other banks already lower their interest rate on savings.

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  Adrian Player on 01/10/2020 - 17:36

  Id take ING over this any day at 2.49% very low on fees and a 1-2 day sla. Ive got 3 clients submitted to westpac and the file hasnt been picked up by the assessor for close to 1.5 months so far. Will take those clients over 3-4 months to refinance. ING would take 4-5 weeks total.

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  Smaland on 01/10/2020 - 21:10

  Is there any cashback with Westpac? Is St. George the better deal (4K cashback minus fees etc)?

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