Westpac cuts fixed rates for first home buyers

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First home buyers in Sydney and Melbourne have in recent years been crowded out by a boom in purchases from investors, but over roughly the last year, this trend has started to turn the other way.

“The first home buyer market continues to grow and we expect this trend to continue,” said Westpac’s head of portfolio management, home ownership, Andy Wright.

“Getting a foot on the property ladder remains challenging for first home buyers, particularly in the eastern states, which is why we are always looking at ways to ensure they have a range of competitive options to choose from.”

Westpac also launched a new “introductory” variable rate for first home buyers. It will offer first time buyers a 0.8 percentage point discount off its standard rate for the first five years of their loan, with a variable rate of 3.79 per cent.

The bank also said it would not charge monthly fees, typically less than $10, or establishment fees, which can be up to $600, to first home buyers who took out the loans.