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28 March 2008

Westpac moves lending rates

Westpac today announced it was increasing interest rates on a range of home loans as a result of the continuing global liquidity crisis.

The interest rate on home loan products will increase 0.10%. Westpac's standard variable rate will be 9.37%, effective Wednesday 2 April 2008.

In addition, Westpac will offer competitive rates on its deposit products including our key deposit account, Reward Saver, with a rate of up to 7.40%. Westpac has also raised its four month term deposit rate to 7.80% (effective 31 March 2008).

Westpac Group Executive, Consumer Financial Services, Peter Clare said the decision to raise home loan interest rates was made in light of the continued funding pressures the bank was experiencing.

"Operating as we do in the global economy, long and short-term funding costs are at record levels. We will continue to absorb a significant portion of the additional borrowing costs that we are experiencing on behalf of our customers," Mr Clare said.

"We are focused on doing the right thing by each of our key stakeholders and we continue to balance the needs of our customers with the needs of our shareholders and staff.

"We are mindful that this additional rise will have an impact on some family budgets but we want to reassure the community that we have responsible lending practices in place that offer a number of options to help customers manage changes in circumstances."

In the meantime, customers looking for interest rate repayment certainty could consider locking in all or part of their mortgage with one of Westpac's fixed rate loan options.