Media releases
Westpac announces home loan interest rate change
3 February 2026
Following the Reserve Bank of Australia’s decision to increase the cash rate, Westpac has announced it will increase home loan variable interest rates by 0.25% p.a.
The change will be effective for new and existing customers on 17 February.
Westpac Chief Executive, Consumer, Carolyn McCann said: “We understand that an interest rate increase may add pressure to household budgets. For those who need support, we are ready to help.”
“We have a range of tools and dedicated teams ready to assist anyone who is concerned about their repayments or financial situation. If customers have questions or are feeling uncertain, we encourage them to get in touch with us,” McCann said.
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.
“The majority of our customers are ahead on repayments which puts them in a stronger position to navigate this change,” McCann said.
Support for customers:
Customers can visit the Westpac website for more information. 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 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.
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