Media releases
Westpac cuts interest rates
20 May 2025
Westpac has announced interest rate changes for home loan and deposit customers following the Reserve Bank of Australia’s decision to decrease the cash rate by 0.25% to 3.85%.
For home loan customers:
- Westpac will decrease home loan variable interest rates by 0.25% p.a. for new and existing customers, effective 3 June.
For deposit customers:
- Westpac Life total variable rate with bonus interest will decrease by 0.25% p.a. to 4.50% p.a., effective 30 May*.
- Westpac eSaver total variable rate with a 5-month introductory rate will decrease by 0.25% p.a. to 4.50% p.a. for new customers applying online, effective 30 May**.
Westpac analysis shows this rate change, coupled with the previous reduction announced in February, means customers could be saving an extra $178 per month or $2,136 per year based on a $500,000 home loan with principal and interest repayments.
Speaking about the change, Westpac Acting Chief Executive, Consumer, Carolyn McCann said: “We know many people continue to face cost of living pressure and today’s news will provide some welcome relief for mortgage customers.
“Our customers have shown remarkable resilience when it comes to managing their finances through a challenging economic period. However, we recognise things are still tough and every dollar counts in the family budget. We’re ready to support customers and encourage anyone who needs assistance to get in touch."
Westpac customers paying principal and interest will be notified directly about what this will mean for their repayments and how they can make changes, which includes via the app, the website or by contacting the bank.
“We take a range of factors into account when making pricing decisions, including the cash rate and the cost of wholesale funding for the bank. While recent global economic conditions have been volatile, we’re pleased to be in a position to assist home loan customers further,” Ms McCann said.
Support for customers
Customers can visit the Westpac website for more information about our latest home loan rates. They can also call us on 132 032 or visit their local branch. Those experiencing financial difficulty can contact Westpac Assist for personalised support on 1800 067 497.
Tips for managing home loan repayments for variable rate customers:
- Plan ahead. Customers can use a mortgage calculator to work out how much their repayments may cost after an interest rate change or use it to see what the impact of any further 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 continuing to make repayments at the current level if they’re able to. This can be done through our app, online banking, visiting a branch or calling our team. Another option is 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.
ENDS
*Westpac Life changes
The standard variable bonus rate on Westpac Life will decrease by 0.25% p.a..
**Westpac eSaver changes and digital offer conditions
The total variable rate for new eSaver customers applying online consists of the standard variable rate of 1.00% p.a., a five-month introductory rate of 3.15% p.a., and a bonus rate of 0.35% p.a. This total variable rate of 4.50% p.a. is available for new eSaver accounts opened online by sole applicants who have never held an eSaver account before.
Media Contact: