Firing another salvo in the home loans banking war, Westpac today announced it is offering $1,000 credit into a Westpac Choice account on new Premier Advantage Package (PAP) home loans over $250,000 until the end of October.

“This offer builds on Westpac’s existing Spring Home Loan Celebration package meaning that for a limited time, Westpac customers can enjoy a package of incentives on new home loans under our home loan package including a discount of up to 0.8% p.a. off the variable rate home loan, and a 20% discount on the first year of their home and contents insurance on your new home,” the bank said on Wednesday.

The existing Spring Home Loans Celebration offer includes a discount of 0.8% p.a, off the variable rate on a new variable rate home loan of at least $500,000 with Westpac’s Premier Advantage Package, a 20% discount on the first year of your new home and contents insurance, and a free APM Property Profile report when customers meet with one of Westpac’s home finance experts.

To qualify for the $1,000 cash back, customers must set up their home loan repayments by direct debit from their Westpac Choice banking account before the end of October and settle their loan by the end of January 2012.