Westpac enters escalating home loan war.

Westpac is the latest bank to make a move in the escalating mortgage wars between the banks seeking to secure new home loans, according to the Property Observer.

Since the Reserve Bank of Australia (RBA) announced a 0.25 basis point reduction to interest rates at the beginning of May, a number of lenders including the Big Four have made monumental rate cuts going beyond the RBA's 0.25 percent rate cut in an attempt to impress borrowers.

Westpac is the latest lender to enter the competition, slashing its 1 year fixed home loan rate to one of the lowest available in Australia at 4.79 percent. Westpac owned St.George, Bank of Melbourne and BankSA have also slashed their fixed rates below 5 percent, cutting rates to their lowest point since the GFC. The decision comes after results showed 24 percent of Westpac customers fixed their home loans in the six months up to March 31.

While borrowers will be welcoming the low interest rates, Mozo's Kirsty Lamont says that borrowers are faced with the dilemma of whether to lock into a home loan now or wait to see if rates fall further.

"The fact that the banks are cutting their fixed rates so aggressively shows they are pricing further rate cuts," she said.

Although banks may be making some impressive rate cut announcements to grab the markets attention, there are a number of lenders still offering far lower interest rates on their products. Borrowers can compare the home loan market to find the lowest mortgage interest rates on Mozo.

Will you be locking in or waiting to see if rates are cut further? Tell us your thoughts here.