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Interest rate news

Following the RBA’s recent cash rate update

Variable home loan interest rate increase 

07/06/22

After the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, Westpac today announced we'll increase our variable home loan interest rates by 0.50% per annum (p.a.).

Our variable rate changes will come into effect on Tuesday 21 June 2022 for new and existing home loans.

 

Variable rate loan changes

The below rates exclude any package# and LVR+ discounts.

Loan type Rate change Variable rate
from 21/06/22
Comparison rate*
Rocket Repay:
Principal & Interest
+0.50% p.a. 5.33% p.a. 5.47% p.a.
Rocket Repay:
Interest Only
+0.50% p.a. 5.92% p.a 6.06% p.a.

Flexi First Option basic home loans (and variable rate loans no longer for sale) will also increase by 0.50% p.a.

 

You can check your current rate in the Westpac App or Online Banking. Your rate will be updated on Tuesday 21 June 2022.

  • Westpac App – tap your home loan account and tap the (i) icon to find your rate
  • Online Banking – select your home loan account and select Account details, then General to find your rate.

What is the impact to my repayments?

Principal and Interest variable rate home loans

We’ll send a letter with details of the new minimum monthly repayment amount and when this starts, giving you time to adjust arrangements. If you have a direct debit set up for your home loan repayments, this will be automatically updated, as required, to meet your new minimum monthly repayment amount.

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 rates home loans

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

Helpful resources

Changes to your repayments

Use our repayments calculator to work out how much more your repayments may cost as interest rates rise.

 

Take control of your finances

How to access financial support

If you’re concerned about increasing interest rates and meeting your repayments, we’re here to help. Find out more about our financial hardship support, or call us on 1800 067 497 where you’ll talk to a member of Westpac’s dedicated team who can provide tailored support for your situation.

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.

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.

#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.

^Offset is available on a Rocket Repay Home Loan or a Rocket Investment Loan. The same offset transaction account cannot be linked to multiple Rocket Loans. The linked offset transaction account must be in the same name(s) as the loan. Only one offset transaction account can be linked to each Rocket Loan.