Interest rate news
Changes to our variable interest rates
Effective on 30 June 2017, Westpac will reduce its variable rate interest rates for customers paying principal and interest on their owner occupier home loans by 8 basis points to 5.24% per annum (comparison rate 5.38% per annum*).
Westpac will also adjust interest only rates for variable home loans as follows:
- Owner occupier interest only rate will increase by 34 basis points to 5.83% per annum (comparison rate 5.97% per annum*)
- Residential investment interest only rate will increase by 34 basis points to 6.30% per annum (comparison rate 6.43% per annum*)
Switching from interest only to principal and interest repayments
We offer lower interest rates to customers who make principal and interest repayments to encourage them to pay down their debt and own their home faster.
If you wish to pay your home loan sooner by switching to principal and interest repayments, you can do so without paying a switch fee, by contacting us on 132 558 and we’ll talk through your options.
Impact on my repayments?
Variable Interest Rate Home Loans
Paying off the principal and the interest on your home loan
For the moment your repayments will remain the same. Each January we do an annual review of your repayments having regard to any interest rates changes during the prior year. We may do an additional review if interest rates change significantly during a year.
Before making any change to your repayments we'll send you a letter telling you what your new repayments will be and the effective date for that change.
Only paying off the interest on your home loan (Interest Only Home Loan)
Your repayments are adjusted automatically. The repayments will change from the first repayment date after the interest rate change becomes effective.
Fixed Interest Rate Home Loans
Your repayments are not affected by interest rate changes during the fixed period of your home loan.
Change my repayments
For everything you need to know, visit our repayments page.
*Comparison rates are based on a loan of $150,000 over a term of 25 years.
WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.