Loan rate slash could help struggling Aussies

Existing variable home loan customers could refinance their mortgage to take advantage of rate slashes for fixed-rate home loan products, Westpac has claimed.

Speaking to the Sydney Morning Herald, a rep for the bank said that refinancing might help some homeowners struggling during difficult financial conditions.

Comments from the group came after Westpac announced that it will introduce new fixed low-interest home loans following the Reserve Bank‘s decision to slash rates by one per cent in response to the global cash crisis.

Money expert Petter Ingermarsson said that customers could expect to see other major banks follow through because they all tend to act in tandem on such issues.

However, he explained: "If you already have a fixed rate and they lower the fixed rate it’s not going to help you.“

Elsewhere, a report from Wizard Home Loans has explained that even with more low-interest home loans on the market, many Australians will still find themselves under mortgage stress in the months to come.

The number of mildly stressed households – who have cut back on putting money into <a href=”//">savings accounts and sought to refinance – increased 14 per cent between June and July, the company found.ADNFCR-1761-ID-18825561-ADNFCR