Media releases
Westpac announces interest rate changes
5 May 2026
Following the Reserve Bank of Australia’s decision to increase the cash rate, Westpac has announced interest rate changes for home loan and deposit customers.
For home loan customers:
- Westpac will increase home loan variable interest rates by 0.25% p.a. for new and existing customers, effective 15 May.
For deposit customers:
- Westpac Life total variable rate with bonus interest will increase by 0.25% p.a. to 5.00% p.a., effective 15 May*.
- The standard variable rate on Westpac eSaver will increase by 0.25% p.a. for all customers, with the total variable rate with a five-month introductory rate increasing to 5.25% p.a. for new customers applying online, effective 15 May**.
Westpac Chief Executive, Consumer, Carolyn McCann said: “The conflict in the Middle East continues to create global uncertainty and impact inflation.”
“Right now our focus is on helping customers through the current economic environment. We encourage customers who are feeling stretched to reach out early. We have a range of support options available and our teams are ready to help.”
“We’ve also increased deposit rates which will provide some relief for savers who are navigating higher living costs,” McCann said.
Support for customers:
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 or the website.
Customers can visit the Westpac website for more information about our latest home loan or deposit 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 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 change
The standard variable bonus rate on Westpac Life will increase by 0.25% p.a.
**Westpac eSaver change and digital offer conditions
The standard variable rate will increase by 0.25% p.a. The total variable rate for new eSaver customers applying online consists of the standard variable rate of 1.25% p.a., a five-month introductory rate of 3.55% p.a., and an online bonus rate of 0.45% p.a. This total variable rate of 5.25% p.a. is available for new eSaver accounts opened online by sole applicants who have never held an eSaver account before.
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