Westpac To Get Aggressive In Emerging War For Home Loans
Australian banking major Westpac has fired its first salvo in an emerging and increasingly bitter war in the market for home loans, after the lender launched an aggressive discount campaign on Tuesday as it seeks to win new customers and expand its market share in the face of more intense competition from rivals.
Australia’s second largest lender in the latest twist to an increasingly bitter battle for market share was responding to NAB’s revelation at the weekend, that it would pay the ext fees for CBA and Westpac borrowers who switch their mortgages to NAB.
According to The Australian , which obtained an internal email, Westpac strongly criticized the move by NAB and has outlined a the contours of a strategy to deal with the threat including dramatic discounts on its Premier Advantage mortgage package.
Westpac will waive a number of fees associated with mortgage, such as the annual and establishment fees. The lender also intends to offer as much as 75 basis points in discounts on mortgages valued between $250,000 and $500,000, and as much as 80 basis points on home loans valued above $500,000.
Westpac will also no longer require borrowers who have an 80 to 85 per cent loan valuation ratio to take out mortgage insurance.
NAB has run a “fair value” strategy over the past 18 months to maintain the lowest standard variable rate of the four largest banks.
Its 7.67 per cent rate compares with Westpac’s 7.86 per cent, CBA’s. 7.81 per cent and ANZ’s 7.8 per cent.
Compare Australian Home Loan Deals
Comments
Leave a Reply