WESTPAC last night responded to the National Australia Bank's initiative by axing a $395 home-loan fee and increasing rate discounts, saving new borrowers that much again - but it is not abolishing exit fees.
Westpac has waived the first-year Premier Advantage Package annual fee for new mortgages worth $250,000-plus.
Those borrowing at least that amount but less than $500,000 will also get an extra five basis points off their home-loan rate - a 0.75 percentage-points discount off the standard variable instead of 0.7 per cent, saving about $100 a year. For those borrowing more than $500,000 - now a typical first mortgage in Sydney - the discount will be increased to 0.8 per cent, saving $405 a year.
Westpac's action followed NAB's offer to pay mortgage exit fees for Westpac and Commonwealth Bank clients - exclusively revealed in Saturday's Daily Telegraph.
good!