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Westpac has rolled out a new rate of 5.84 per cent per annum for owner-occupier refinancers with up to a 70 per cent loan-to-value ratio (LVR), made available through its Online Home Loan offer.
Additionally, investors are offered a rate of 6.09 per cent per annum for up to an LVR of 70 per cent.
According to the major bank’s data, Australian borrowers are on the hunt for greater savings on existing home loans, with 45 per cent of customers refinancing their home loan to the bank over the past quarter.
Westpac’s managing director of mortgages, James Hutton, said that with cost of living being “top of mind for many Australians, savvy refinancers are making the most of the competitive mortgage market and shopping around for a better deal”.
“Making the switch to Westpac through our Online Home Loan offer could save customers $169 on their monthly repayments, with savings over the life of the loan of $50,929+, based on a $600,000 owner occupier home loan with principal and interest repayments,” Hutton said.
“We also know more Australians are choosing to manage their money online. We have more than six million digitally active customers, and more than 40 per cent of home loan customers have used online tech to save time on their application.
“We expect our refreshed offer, coupled with the convenience of refinancing online, will appeal to both owner occupiers and investors looking for a fast and simple way to achieve greater savings on their existing home loan.”
After launching its digital mortgage for refinancers in 2022, the number of customers utilising the platform has doubled since that time, according to Westpac.
Hutton said that while this offer is available directly to consumers, many customers are still choosing to go through a broker for their “expertise and face-to-face support”.
“If customers have complex needs or need tailored assistance during their Online Home Loan application, our experienced team of lenders and credit assessors remain ready to support the digital experience,” Hutton said.
Westpac is now tied with ANZ in terms of the lowest offered variable rate.
This announcement comes as Think Mortgage director Kapil Virmani observed a surge in investors seeking to refinance their loans following the Reserve Bank of Australia’s most recent cut to the official cash rate.
Virmani said that a larger portion of his investor clients are showing interest in refinancing when compared to owner-occupiers, with this influx of inquiries beginning the day after the February monetary policy meeting.
“After almost three years of rising and elevated rates, there’s clearly pent-up demand from investors for lower rates,” Virmani said.
[RELATED: Refinancing demand rises as rates drop]
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