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Interest rate news

Following a Reserve Bank of Australia cash rate update

Home Loan Interest Rate News – Tuesday, 3 May 2022


Changes to our variable interest rates

Following the Reserve Bank of Australia’s decision to increase the official cash rate, Westpac today announced it will increase variable home loan interest rates by 0.25% per annum (p.a.)  

The following interest rate changes will come into effect on Tuesday 17 May 2022 for new and existing home loan variable rate products:
 

  • Owner Occupier Principal & Interest home loan variable rate increasing by 0.25% p.a. to 4.83% p.a. (comparison rate 4.97% p.a.*)
  • Owner Occupier Interest Only home loan variable rate increasing by 0.25% p.a. to 5.42% p.a. (comparison rate 5.56% p.a.*)
  • Investment Property Principal & Interest home loan variable rate increasing by 0.25% p.a. to 5.38% p.a. (comparison rate 5.52% p.a.*)
  • Investment Property Interest Only home loan variable rate increasing by 0.25% p.a. to 5.64% p.a. (comparison rate 5.78% p.a.*)
  • Please note rate changes also apply to our Flexi First Option Loans and grandfathered variable rate products.


The above rates exclude any discounts offered under the Premier Advantage Package# and based on LVR+.


What is the impact to my repayments?

Principal and Interest variable rate home loans

We may review repayments in the coming months but are not changing at this time. If you'd like to adjust your repayment after your interest rate is changed, please call us on 132 558 from 17 May 2022.

Interest only variable rate home loans

Your repayment changes each month depending on the interest that is charged to your loan.  If you have a direct debit set up for your home loan repayments, this is automatically updated each month to meet your interest only repayment.

Fixed interest rate home loans

Repayments are not affected by variable interest rate changes during your fixed rate period.

Terms & conditions

Credit Criteria, fees and charges apply. Terms and conditions available on request. Based on Westpac's credit criteria, residential lending is not available for Non-Australian Resident borrowers.

#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 88KB)

*Comparison rate: The comparison rate is based on a loan of $150,000 over the 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.

+LVR stands for the initial loan to value ratio at loan approval. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and don’t change because of changes to the LVR during the life of the loan.