Spring is now locked and loaded for those in the market for a mortgage.

The major banks, thanks to a healthy investor appetite for their bonds, now have the ammunition to fight an interest rate war at a time when rates are already at historic lows.

In July, acting on the earlier indicators of continued low interest rates, Westpac launched a five-year medium-term bond, notionally seeking $100 million but catering for potential oversubscriptions.


Investor demand was such that Westpac ended up raising $900m - nine times the original amount sought - and at an interest rate of 2.22 per