Major Bank Rate Drop: What Westpac’s Surprise Move Means for You
- laibatariq2300
- 1 day ago
- 3 min read
Published by GBS Accountants & Advisors— 17 April 2025
In a bold pre-emptive move ahead of the Reserve Bank of Australia’s (RBA) expected May rate decision, Westpac has slashed its variable home loan interest rates — putting pressure on the rest of the Big Four banks to follow suit and signaling potential relief for borrowers.
What Happened?
Westpac has cut its variable home loan rates by as much as 1.05 percentage points for owner-occupiers and 1.4 percentage points for investors — effectively pricing in four to five RBA-style cuts in one hit.
This change drops the advertised rate for new owner-occupiers from 7.19% to 6.14%, while investor rates now sit at 6.34%, down from 7.74%. It’s a game-changing shift, especially for those entering the market or considering refinancing.
The Catch?
According to Canstar’s Sally Tindall, these dramatic cuts may not be the golden ticket they appear to be. In fact, many borrowers have already been receiving similar rates through in-branch negotiations. The advertised rate drop simply closes the gap between public offers and private deals.
So, what does this mean for existing customers?If you're already with Westpac — or any of the big four banks — now is the time to review your home loan rate. The lowest big four variable rate for owner-occupiers is currently:
ANZ: 5.84%
CBA: 5.90%
Westpac: 6.14%
NAB: 6.54%
With the average rate for new customers hovering around 6.01%, if your mortgage interest rate is higher than this, it’s time to start asking questions.
GBS Tips for Borrowers
Customer satisfaction is at the heart of any successful business. Providing an exceptional experience can turn first-time customers into repeat clients and brand advocates. From user-friendly websites to responsive customer service, every interaction with your brand should be memorable and positive.
Consider gathering feedback regularly through surveys, reviews, and direct conversations. Act on this feedback to improve your products, services, and overall customer engagement. Personalization, whether it’s in marketing or customer service, also creates a deeper connection with your audience.
Reality Check Your Rate: Compare your current home loan rate against what’s being offered to new customers. Many lenders offer better deals to attract new business — don't let loyalty cost you more.
Negotiate Like a New Customer: Lenders are often willing to match or beat offers to keep your business. Don’t hesitate to ask your bank for a better deal — especially now that Westpac has reshaped the playing field.
Consider Refinancing Options: If your current bank won’t budge, it might be time to refinance. Our advisors can help compare options, calculate potential savings, and manage the paperwork.
Watch for the May RBA Meeting: Westpac’s move might be a signal of where the market is heading. The next RBA meeting on May 20 is expected to result in a 25 basis point cut. Now is the time to plan ahead.
Need Help Reviewing Your Home Loan?
At GBS Accountants & Advisors, we help individuals and businesses navigate financial shifts like these with clarity and confidence. Whether you’re seeking a better rate, refinancing, or planning your next property investment, our team is here to support you.
Speak to GBS Accountants & Advisors today — make your money work smarter.
If you're looking to buy a property or refinance at a better interest rate with a better product, don't hesitate to reach out to us at 1300 766 427 or 03-9305 3665. We're here to help!
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