Westpac Cuts Fixed Mortgage Rates Below 5%

Implications of Westpac’s rate drop for homeowners

Westpac cutting its 3-year fixed mortgage rate below 5% signals stronger competition among major lenders. A sub-5% fixed rate offers appealing repayment certainty and creates opportunities for both refinancers and new borrowers. Key impacts:

• Refinancing appeal: Homeowners on higher rates may save significantly by switching.

• Budget stability: Fixing below 5% protects you from potential rate rises for three years.

• Competitive pressure: Other lenders often respond, improving deals across the market.

• Time to reassess: This drop makes it worth reviewing whether a fixed rate suits your needs.

HeyNest connects you with an independent broker who can compare Westpac’s updated rate against dozens of alternatives to ensure you get the best deal, not just the loudest headline.

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Is a 3-year fixed rate right for you?

A sub-5% rate is attractive, but fixing for three years comes with trade-offs that must align with your goals. What to consider:

• Extra repayment limits: Fixed loans often cap how much extra you can pay.

• Break costs: Exiting early due to selling or refinancing can be expensive.

• Offset limitations: Many fixed products don’t include a full offset account.

• Future rate movements: You won’t benefit if variable rates fall during the term.

A HeyNest-connected broker can assess whether Westpac’s fixed offer suits your flexibility, repayment plans and expected life changes.

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How to take advantage of Westpac’s new rate?

To make the most of the rate cut, you need to confirm eligibility, assess the full cost and compare it with competing offers. Smart steps:

• Check eligibility: Some promo rates apply only to certain LVRs or borrower types.

• Review all fees: Factor in application, valuation, and ongoing costs to find the true annual cost.

• Compare features: Look at splitting options, offset availability and flexibility, not just the rate.

• Use negotiation power: Brokers can often secure fee waivers or sharper deals.

HeyNest gives you fast access to an independent broker who can negotiate directly with Westpac, or identify an even better offer elsewhere.

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Frequently asked questions

Is the Westpac 3-year fixed rate available for all borrowers?

Promotional rates are typically restricted, often requiring a minimum deposit (80% LVR or lower) and may vary between new customers, refinancers and existing customers.

What happens if variable rates drop during the 3-year fixed term?

If variable rates drop, your fixed rate remains unchanged for the 3-year term, meaning you would miss out on the lower variable rate.

Are fixed rates generally lower than variable rates in the current Australian market?

Yes, in current market conditions, lenders often offer lower fixed rates to attract new business and secure funding, but this is subject to constant change.