Bankwest cuts rate

COMMONWEALTH Bankowned Bankwest is slashing its three-year owner-occupier mortgage rate as lenders chase an ever-decreasing number of suitable home loan customers.

The Perth-based lender will from today cut its principal and interest rate for owner-occupiers by half a percentage point to 3.48 per cent, which product comparison service Canstar said was the lowest in the market. Its three-year fixed investor rate will come down to 3.88 per cent.

“The move puts Bankwest well in the mix for market share of the diminished pool of borrowers in market who tick all the credit boxes,” said Canstar’s Steve Mickenbecker.

“All of the big banks have been cutting fixed rates in recent weeks and the trend is being picked up by the rest of the market.”

While the Reserve Bank has been resisting pressure to cut the cash rate – which is a factor in banks’ funding costs – lenders have been trimming mortgage rates to try to stimulate demand amid a foundering real estate market.