Rates to be passed on soon
(7 February 2012 – Australia) After passing on two pre-Christmas rate cuts, Westpac customers wanting to lower repayments before March will have to ring the bank to ask for it.
In the mean time the bank says it is ''an opportunity for the customer to get ahead by paying more than they need to''.
Customers at Australia's second-biggest bank were told last month new lower repayments would start in March, well after the 14 November and 19 December dates on which the bank says its lower rates became effective.
The big four banks said they would pass on the savings to home loan customers within days or weeks. Some smaller banks promptly introduced the lower repayments.
But Westpac's group executive of retail and business banking, Jason Yetton, wrote to customers on 23 January, advising them of new repayment amounts, some starting on 2 March, citing the RBA rate cut on 1 November.
''This follows the recent adjustments in official cash rates by the Reserve Bank of Australia in November and December 2011 and other market conditions,'' Yetton wrote.
''This is an opportunity for the customer to get ahead by paying more than they need to, and therefore reducing their loan term,'' a spokeswoman said. It was up to customers to contact the bank ''to amend their repayments earlier if they choose''.
The act has caused a split, some happy to get ahead with repayments, while others view it as a way for the banks to keep their coffers stocked.
Customers at Australia's second-biggest bank were told last month new lower repayments would start in March, well after the 14 November and 19 December dates on which the bank says its lower rates became effective.
The big four banks said they would pass on the savings to home loan customers within days or weeks. Some smaller banks promptly introduced the lower repayments.
But Westpac's group executive of retail and business banking, Jason Yetton, wrote to customers on 23 January, advising them of new repayment amounts, some starting on 2 March, citing the RBA rate cut on 1 November.
''This follows the recent adjustments in official cash rates by the Reserve Bank of Australia in November and December 2011 and other market conditions,'' Yetton wrote.
''This is an opportunity for the customer to get ahead by paying more than they need to, and therefore reducing their loan term,'' a spokeswoman said. It was up to customers to contact the bank ''to amend their repayments earlier if they choose''.
The act has caused a split, some happy to get ahead with repayments, while others view it as a way for the banks to keep their coffers stocked.
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