Westpac home loan package shrinks to 3.69%, now lowest rate among big four

Tom Watson

22 Jul 2019

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Major bank Westpac has today slashed interest rates on one of its popular packaged home loan deals, applying a larger 1.29% discount across all new Premier Advantage Package home loans.

The move means that the Rocket Repay Home Loan (Premier Advantage Package) variable interest rate for owner occupiers making principal and interest repayments now sits at 3.69% (4.09% comparison rate*). 

However, this offer isn’t available to existing customers. Instead, the new 3.69% (4.09% comparison rate*) rate is only available to new customers borrowing at least $150,000. 

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The decision by Westpac effectively scraps the old tier-based system which calculated interest rates on Premier Advantage Package home loans based on the amount borrowed. 

For example, borrowers taking out a loan between $150,000 and $250,000 would have previously been offered a rate of 4.38%, while those wanting to borrow between $250,000 and $500,000 would have received a 4.18% rate and so on.       

How does it compare to the rest of the Big Four? 

Today’s move means Westpac is now offering the lowest variable rate package offer among Australia’s big four banks - and by some distance! 

In fact, the rate is a full 0.38% lower than the next best equivalent rate offered by a big bank for borrowers taking out a $400,000 loan - the 4.07% rate NAB is currently offering on its Tailored Home Loan (Choice Package). 

To put that into perspective, according to Mozo’s Home Loan Repayments Calculator a new borrower taking out a $400,000 loan with the Westpac Rocket Repay Home Loan (Premier Advantage Package) offer would pay monthly repayments of $2,043 over a 25 year loan. 

In comparison that’s: 

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Ready to compare the full range of features and fees on offer with the Westpac Rocket Repay Home Loan (Premier Advantage Package)? Read our full review, or check out some of the other hot home loan offers below.

Compare home loans 2019 - rates updated daily

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    $1234

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    • 2.65% p.a.

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    • 2.59% p.a.

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    • $299

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  • Promoted

    Bank of Queensland

    2.69% p.a.

    2.86% p.a.

    $1234

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    Economy Home Loan Discount Rate

    An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 70%.

    • 2.69% p.a.

    • 2.86% p.a.

    • $450

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    • $320.00

    • yes - free

    • yes

    • no

    • 70.00%

    • $450

    • $150,000

    • -

    • Variable

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    • Owner Occupier

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    • $2,500 cashback when you refinance your home loan to BOQ, min $250,000, 70% LVR or less. Apply before 15 August 2020, settle by 31 October 2020.

    Read our Mozo Review to learn more about the Economy Home Loan Discount Rate

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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