Bank lands a low blow

THE GREED OF THE BIG FOUR

WESTPAC has been crowned the stingiest lender of the big four banks in 2019 by passing on the smallest portion of the central bank’s three cash rate cuts this year.

The bank yesterday revealed it was delivering just 0.15 percentage points of the Reserve Bank of Australia’s latest 0.25 per cent rate cut.

Compounding the blow, Westpac held back some of the cuts in June and July when the RBA also reduced the rate.

The lender passed on only 0.4 percentage points of the total 0.5 per cent drop.

In total Westpac has come out the worst of the big four banks by passing on just 0.55 percentage points of the total 0.75 per cent drops.

Rival lenders the Commonwealth Bank and ANZ tied for second worst, having passed on 0.57 percentage points. The National Australia Bank passed on the largest reduction of 0.59 per cent.

Westpac left its standard 4.7% 0.57 percentage points 4.83% 0.57 percentage points 4.77% 0.59 percentage points 4.83% 0.55 percentage points variable rate higher than the others at 4.83 per cent. CBA is 4.8 per cent, ANZ 4.79 per cent and NAB4.77 per cent.

Westpac’s chief executive of consumer David Linberg said the decision came amid serious financial consideration.

“We took into the account the reduction of the official cash rate and the commercial pressures of the low-rate environment,” he said.

On a $300,000 30-year mortgage, a customer paying the average variable rate would save from a full point cut.

ANZ will give customers only a 0.14 per cent point reduction to most variable loans.

Despite this, the bank’s group executive of Australia retail and commercial Mark Hand said ANZ wanted to make sure it helped rev up the economy.

“While we recognise many customers will use this opportunity to pay down their existing home loan faster we hope this provides the economic stimulus the Reserve Bank is wanting to generate,” he said.

Aussie Home Loans’ chief executive officer James Symond urged borrowers to review their rates.

“If your lender doesn’t come to the party, get on the phone to your mortgage broker who could find you a better deal,” he said.

Financial comparison website RateCity’s spokeswoman Sally Tindall said: “If enough people started switching, they would stand up and listen.” $43 per month 0.25 percentage