Westpac announces interest rate changes
6 July 2022
Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 0.50%, Westpac has announced interest rate changes for home loan and deposit customers.
From 20 July, Westpac will increase home loan variable interest rates by 0.50% p.a. for new and existing customers.
Westpac will also increase the standard variable base rate for Westpac Life savings customers by 0.50% p.a. from 22 July, bringing the total variable interest rate to 1.35% p.a.
Customers will be able to access a new Term Deposit offer of 2.50% p.a. for terms between 12 to 23 months from 8 July.
“We considered several factors in making this decision including the 0.50% rise in the official cash rate and ongoing increases in the cost of funding, as well as the needs of both borrowers and depositors,” said Chris de Bruin, Westpac Chief Executive Consumer and Business Banking.
“To further support savers following a period of low rates, we’re increasing the standard variable base rate on Westpac Life, one of our most popular savings accounts, and introducing a new term deposit rate.
“We know that some customers will be reassessing their household budgets as home loan interest rates rise. While the majority of our home loan customers are ahead on repayments and in a good position to adapt to interest rate changes, some may find it more challenging.
“We have a dedicated team to assist customers potentially facing financial difficulty, who provide personalised support including giving customers more time to get their finances back on track. We’re also engaging with our customers coming off fixed rate terms to help them understand the home loan options available and plan for future adjustments,” Mr de Bruin said.
Customers who would like more information on today’s announcement can contact their local branch, visit westpac.com.au, or call Westpac Customer Care on 132 032.
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.
- Manage repayments Depending on their circumstances, customers may consider other options to bring greater certainty or help them manage their repayments – including switching to a fixed or split loan.
- 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.
Term Deposit offer
Offer available from 8 July 2022 for a limited time only on Term Deposits 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.