Westpac announces interest rate changes
7 June 2022
Following the Reserve Bank of Australia’s decision to increase the cash rate by 0.50%, Westpac has today announced interest rate changes for home loan and deposit customers.
From 21 June, Westpac will increase home loan variable interest rates by 0.50% per annum for new and existing customers.
Westpac is also introducing a term deposit rate of 2.25% per annum for 12 months to support customers with their savings from 9 June. Other deposit interest rates remain under review at this time.
“We know a change in interest rates affects every budget differently. Our customers have managed their finances carefully during the pandemic, with many putting more funds aside in their savings and offset accounts. This means the majority of our customers are ahead on mortgage repayments and have a buffer available to help them manage an interest rate increase,” said Westpac Consumer and Business Banking Chief Executive, Chris de Bruin.
“To help customers through the changing interest rate environment, we offer our customers a range of tools to help them manage their home loan repayments. Customers can use our online interest rate change and/or mortgage repayment calculator to see how adjusting their loan amount, term or interest rate will impact them or help pay off their loan sooner.
“For customers who need some extra help or who are in financial difficulty, we have our specialist teams standing by who will work with them to tailor a financial solution to meet their needs. We encourage customers doing it tough to call us as soon as possible,” said Mr de Bruin.
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 plan ahead to see what the impact of further interest rates changes may mean for their mortgage. Westpac’s Mortgage Repayment Calculator can be viewed here.
- Get ahead by paying more frequently 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 a transaction account linked to a customer’s mortgage. 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.