This article today on Westpac fixed rates. 3 year fixed rate at 6.49% available from next Monday.
http://www.theage.com.au/news/Busin...home-loan-rates/2005/09/09/1125772679152.html
"Westpac cuts fixed interest rates
September 9, 2005 - 2:30PM
Westpac has become the latest home lender to cut its fixed interest rates in an attempt to win back customers in the midst of the housing slowdown.
In Westpac's case, it's also a matter of trying to boost its lagging home lending business, with the bank saying the cuts were "absolutely a competitive move".
The bank has lowered its three year fixed rate to an industry low of 6.49 per cent, down from 6.89 per cent, effective on Monday.
That beats every other bank, credit union and mortgage broker except for home loan specialist Rate Busters, according to independent data comparison company CANNEX.
It's also a much larger cut than the small adjustments made by other home lenders including ING, AMP, Assured Home Loans and Community First Credit Union over the past week.
Westpac has also pulled back its seven and 10 year rates to 6.99 per cent, down from 7.50 per cent.
And it's made a small change to its one year rate, down to 6.85 per cent from 6.95.
The changes come at a time when competition for home loans is hotter than ever, as the housing market in Australia slows down from the highs of recent years.
Westpac has suffered more than the other major banks, though this was partly due to a deliberate decision to shun the risky but popular low documentation loans.
The bank was also behind its peers in utilising the mortgage broker networks.
The most recent industry statistics from the Australian Prudential Regulation Authority showed Westpac's mortgage growth remained below its rivals at an annualised rate of 6.7 per cent in July, compared to a market average (known as system) of 8.2 per cent.
But Westpac has been working hard to address the problem, installing a new team to head up its consumer banking division and launching mobile lenders in branded VW vehicles to help attract new customers.
Analysts say the cut in interest rates is just another step in Westpac's journey to improving its mortgages business.
"There's pressure on them to get the lending growth back up towards system," said Burdett, Buckeridge and Young analyst John Buonaccorsi.
"They have probably nearly done that during June and July.
"This might get them an extra push."
Westpac says it is able to make the cut because it is passing on savings the bank itself has been receiving.
Banks and financial institutions have been able to borrow more cheaply recently due to falls in bond rates, which determine how much it costs to fund the loans they give to consumers.
The falls have been particularly significant in bonds that span longer periods of time, such as 10 years.
Economists are also suggesting official interest rates are likely to remain stable until the end of the year."
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