Interest rate news
Changes to our standard variable interest rates
Effective on 23 August 2016, Westpac will reduce interest rates across a range of variable lending products for home owners.
- Variable home loan (owner occupier) rate reduced by 0.14% to 5.29% per annum for customers with principal and interest repayments (comparison rate 5.43% per annum*);
- Variable residential investment property loan rate reduced by 0.14% to 5.56% per annum for customers with principal and interest repayments (comparison rate 5.7% per annum*);
- Variable home loan (owner occupier) rate reduced by 0.10% to 5.33% per annum for customers with interest only repayments (comparison rate 5.47% per annum*); and
- Variable residential investment property loan rate reduced by 0.10% to 5.60% per annum for customers with interest only repayments (comparison rate 5.74% per annum*).
- Equity Access loan rate reduce by 0.10% to 5.65% per annum.
This reduction takes Westpac's home loan rates to historical lows and reflects the complex domestic and international environment banks are facing.
We are also offering lower interest rates to customers who make interest and principal repayments to encourage them to pay down their debt and own their home faster.
Read more on how this will benefit you in our media release.
Switching from interest only to principal and interest repayments
If you are currently paying interest only repayments, you would have received a letter in July about a change to your reference rate name to better reflect your repayment type. This is effective on 19 August 2016.
Your new reference rate will be included in this reduction and the interest rate you pay will be reduced by 0.10%.
If you wish to pay your home sooner by switching to principle and interest repayments, you can do so without paying a switch fee until 30 September 2016. Customers with Premier Advantage Package can switch at any point in time at no additional cost.
To switch you can call 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. The savings from this latest interest rate reduction will be shifted to paying off more of your principal. So you'll be paying off your home loan faster!
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.