Westpac announces interest rate changes
4 August 2022
Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 0.50%, Westpac has announced a range of interest rate changes for home loan and deposit customers.
For home loan customers
- Home loan variable interest rates will increase by 0.50% p.a. for new and existing customers, effective 18 August.
- Westpac will also offer a special four-year fixed rate of 4.99% p.a. for owner-occupied customers on principal and interest repayments with the Premier Advantage Package*, effective 9 August.
For deposit customers
- Westpac Life total variable rate with bonus interest will increase by 0.50% p.a. to 1.85% p.a., effective 18 August.
- Under Westpac’s Spend&Save offer for 18-29 year olds, eligible customers can earn a total variable rate of 3.25% p.a., an increase of 0.50% p.a., effective 18 August.
- Westpac eSaver standard variable rate will increase by 0.55% p.a. to 0.85% p.a. for new and existing customers. The five-month total introductory variable rate for new eSaver customers will increase to 1.80% p.a., effective 18 August.
- Customers will be able to access a new Term Deposit offer of 3.00% p.a. for 12 to 23 months, effective 8 August.
“With every interest rate change, we consider multiple factors and stakeholders, including homeowners and savers. We also take into account the change to the cash rate and other increases to the cost of funding our loans,” said Chris de Bruin, Westpac Chief Executive, Consumer and Business Banking.
“We understand the change in home loan interest rates will mean many customers will be reviewing their budgets. While more than two thirds of customers are ahead on repayments, we recognise after several successive interest rate rises, some may be feeling more financial pressure. We’re here to support these customers and encourage them to give us a call.
“We’re also putting a competitive fixed rate offer on the table to help give our customers more options as interest rates rise. New and existing customers could fix their loan for four years which may provide more certainty over their repayments, or split their loan between fixed and variable rates.
“Over the past few months, we’ve continued to increase our rates for savers across a range of products. Following the latest cash rate change, we will lift interest rates again on two of our most popular accounts, Westpac Life and eSaver, which will boost the returns on savings for many of our customers,” said Mr de Bruin.
Customers who would like more information on today’s announcement can go to westpac.com.au, call Westpac Customer Care on 132 032, or visit their local branch.
Customers experiencing financial difficulty can contact Westpac Customer Assist for personalised support on 1800 067 497.
Helpful tips for managing home loan repayments for variable rate customers:
- Plan ahead Customers can use a mortgage calculator to work out how much more their repayments may cost after an interest rate rise or use it to see what the impact of any further interest rate changes may mean for their mortgage. Westpac’s Mortgage Repayment Calculator can be viewed here.
- Get ahead Customers may be able to reduce the total term and interest costs of their loan, by splitting their monthly repayment in half and paying every two weeks instead. By paying more frequently, customers are reducing the principal amount sooner, as they will make the equivalent of an extra month’s repayment each year.
- Maximise offset accounts An offset account is an eligible transaction account linked to a customer’s mortgage account. The balance of this linked account is ‘offset’ against the home loan balance when loan interest is calculated, so could reduce the amount of interest paid. For customers without an offset, now could be a good time to check if their loan offers this feature and consider if it’s right for them.
* $395 annual package fee applies.
To access the Spend&Save rate, customers must be aged 18-29 years and have a Westpac Choice account, linked debit card and a Westpac Life account, and make five eligible purchases each month on balances up to $30,000.
Term Deposit offer
Term Deposit available for a limited time only when opened or renewed by Westpac personal and business customers. Not available for other financial institutions or Westpac Institutional Bank customers. Available on deposits from $5,000 - $5,000,000 with interest paid monthly. Terms and conditions apply.