Four cuts: Australian Bank’s huge move ahead of Royal River

As interest rates drop, the inclusion of four major Australian banks, the Commonwealth, Western Pacific, is preparing for major competition.

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One of Australia’s four largest banks has just triggered the trigger with a huge interest rate transfer, refusing to wait for the next meeting of Kuku in four weeks.

Westpac cuts four tax rates by up to four cuts on owner occupation, while five of investors lowered the Reserve Bank, on the one hand its variable home loans, as Australia’s major banks cut 25 basis points on May 20.

Related: “Upgrade”: Shock RBA Calls to Beat Australia

Westpac proposed a tax cut equivalent to four times in one go. Image: NCA Newswire / John Gass

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Westpac announced that owners occupied up to 1.05 percentage points of layoffs, investors’ variable home loan interest rate was 1.4 pp, with offset accounts.

For the old interest rate occupied by the owner was 7.19%, new customers have now changed to 6.14% – down 1.05pp.

For investors, the figure has increased from a 7.74% interest rate to 6.34% – a larger drop of 1.40pp.

Westpac will be equivalent to four to five reductions in one breath.

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But Sally Tindall, director of data insights at canstar.com.au, poured cold water on this move, saying that it wasn’t necessarily the reason for a major celebration, as the advertising price has just now reflected the branches offered to customers.

“It may sound counterintuitive, but over the years, banks have used higher prices as part of marketing scripts. By intentionally promoting higher prices, banks have created the illusion of victory when customers “reward” with special discounts,” she said.

Sally Tindall, director of Canstar Data Insights, said your bank is now asking for lower interest rates.

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Ms. Tyndall warned borrowers that “borrowers should not fall into the size of discounts, but should pay close attention to real interest rates and ensure their competitiveness”.

“If you have a home loan with Westpac, it’s time to do a realistic check on your rates,” she said. “If it’s higher than what the bank provides for new customers, ask them to reduce.”

Westpac brings itself close to the most intense competition.

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She urged borrowers to still negotiate to be less than the current advertising campaign.

“If you own a home loan from the Big Four banks, know that the average estimated average interest rate for new clients with all the homeowner variable loans is 6.01%. If your home loan interest rate is higher than this trademark, then it’s time to ask your big bank, why?”