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Westpac has announced further changes to support home loan and small-business customers, including lowering fixed home loan rates and reducing rates on a number of small-business loans.
In order to support borrowers, Westpac has further reduced fixed interest rates for home loan customers.
For a four-year term for owner-occupied customers on principal and interest repayments with a Premier Advantage Package, the bank assigned a fixed interest rate of 1.99 per cent per annum (pa).
Meanwhile, a fixed interest rate of 2.09 per cent pa has been assigned on one, two and three-year terms for owner-occupied customers on principal and interest repayments with a Premier Advantage Package.
According to Richard Burton, Westpac’s acting chief executive for consumer division: “We recognise it has been a tough time for many Australian households, and these changes mean that customers will be able to access even lower interest rates.”
“However, we are in an extraordinary period with the official cash rate at a historical low and unconventional monetary policy measures in place. It is critical we carefully manage interest rate changes while continuing to do our part in supporting customers and the economy.”
Westpac also made significant reductions to interest rates for eligible new business loans provided under the government’s Coronavirus SME Guarantee Loan Scheme, including a fixed interest rate of 2.38 per cent pa for terms of three to five years, a reduction of up to 0.56 per cent pa, as well as a variable interest rate of 3.09 per cent pa on new fully secured small-business loans, a reduction of 0.29 per cent pa.
Westpac chief executive for business division Guil Lima, said: “Small businesses are a major employer of Australians and have an important role in helping with the nation’s longer-term economic recovery.”
“We have made significant reductions to some small-business loans to support lending and growth, as part of our ongoing efforts to assist small businesses during the pandemic.”
The fixed interest rate changes for home loan customers are effective Monday, 9 November, while the small-business interest rate changes are effective Friday, 13 November.
Interest is the amount of money charged by a lender or financial institution for a loan, which is calculated as the percentage of the principal amount paid over the loan term.