Westpac has cut interest rates on its fixed rate home loans by up to 20 basis points.

In a release to brokers, the bank said it was reducing rates for its Home and Investment Property Loan for two to 12 year fixed rates, effective today.

The two and three year fixed rate products will see a 20 basis point decrease, while the four through 12 year products have been cut by 10 basis points.

Westpac stated that the reduction gives them the leading rate among the majors for two and three year fixed loans.

A Westpac spokesperson told Australian BrokerNews the move to slash fixed rates was due to an easing of the bank's cost of funds for fixed rate products She said that uncertainty surrounding future RBA rate decisions could lead some consumers to consider locking in their rates.

"Given the current environment of uncertainty surrounding the future direction of RBA moves, it is a good time for customers to consider fixing all or a portion of their loan.

Therefore, brokers should consider their clients' financial situations and provide appropriate advice for their clients considering the option to fix their loan," she commented.