Founded in 1817 as the Bank of New South Wales, Westpac is one of Australia’s Big Four banks.
Westpac has a range of fixed and variable home loans, split loans and construction loans for first home buyers, second homes and property investors.
Westpac home loan products cover the range from 'no frills' basic home loans to packaged premium offerings. All loans come with redraw with no fees, unlimited or high extra repayments, flexible repayment terms and periodic market leading interest rates. Some loans come with high or 100% offset accounts.
Formerly, preferred groups of low-risk professional borrowers, like lawyers, accountants, sports professionals and others would get special terms including LMI waivers on home loans and investment loans, but this preferential treatment has recently been restricted to medical professionals only.
Westpac still has a full choice of loans for self-employed people.
Product offerings
Here’s a summary of Westpac home loans for first home buyers, second home buyers and property investors:
Westpac’s Flexi First Option Home Loan
- No frills home loan
- Suitable for smaller loan sizes
- Loan application fee may be waived
- No annual or monthly fees
- No offset account
- Unlimited extra repayments
- Redraw with no redraw fee or minimum amount
- Cashback incentive offered to successful refinance loan applicants from time to time
Variable with offset loans
Westpac’s Rocket Repay home loans and investment loans are full-featured home loans when combined with the Premier Advantage Package.
- A 100% offset account and competitive interest rates
- Best for larger loan sizes
- Unlimited extra repayments
- Option for a fixed interest portion (split loan)
- Redraw with no redraw fee or minimum amount
- No monthly fees
- Fee discount or waiver on other Westpac products (e.g. credit card)
- Cashback incentive offered to successful refinance loan applicants from time to time
- Package fee applies
Westpac’s 1-5 year fixed home loans
- Repayment won’t change during fixed term
- $30,000 extra repayment limit during fixed term
- Redraw with no redraw fee or minimum amount
- No loan establishment/application fee
- No monthly fees
- Fee discount or waiver on other Westpac products (e.g. credit card)
- Cashback incentive offered to successful refinance loan applicants from time to time
- Package fee applies
Westpac investment property loans
- Fixed rate, variable rate and split loans and a line of credit available
- Interest rate discounts for eligible investors who pay 12 months interest in advance on fixed rate loans
- Cashback incentive offered to successful refinance loan applicants from time to time
- Full online property reports
- Property investing guides
- Package fee applies
Record on rate cuts
Westpac responded to recent RBA rate cuts by reducing its home loan interest rates. In March 2020 it reduced its variable interest rates, and in November 2020 it reduced fixed interest rates.
Eligibility
To apply for a Westpac home loan, you will need to:
- Be at least 18 years old
- Be an Australian citizen or eligible permanent resident
- Prove your identity and address
- Show proof of income
- Give detailed information about expenses
- Give detailed information about assets and liabilities
Pros and cons
Pros
- Flexibility of application process – online or offline with branch access
- No monthly or annual fees
- Offset accounts available with some loans
- Works with mortgage brokers
- Periodic market-leading refinance rebates and cashback
- Offers bridging loans, owner builder loans and construction loans
Cons
- Self-employed borrowers need to show proof of income over two years
- Premium package fee quite expensive
- Extra repayment limit on fixed term loans
