Westpac cuts establishment fees

Yesterday, Westpac advised its staff that it will waive the A$395 annual package fee and the $600 establishment fee on one of its most popular home loan options, the Premier Advantage mortgage package. The bank will also discount the notional variable rate on this loan by up to 80 basis points.

The steps are in response to pricing gimmicks by the National Australia Bank, which said at the weekend that it will pay the exit fees of customers switching from Westpac and the Commonwealth Bank.