Variable home loan interest rate decrease
Tuesday, 20 May 2025 announcement
Following the Reserve Bank of Australia’s (RBA) decision to decrease the official cash rate, Westpac announced a 0.25% per annum (p.a.) decrease to our variable home loan interest rates, for new and existing home loans.
These variable rate changes will come into effect on Tuesday 3rd June 2025.
Estimate your new repayments
How to check your rate
- 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 this means for your repayments
What type of loan are you on?
I’m repaying Principal & Interest on my variable loan
We’ll review your repayments and send a letter with details if your minimum monthly repayment amount is changing, and when this starts. Learn more about how you can switch to Digital Mail to receive future repayment letters sooner.
I’m repaying Interest Only on my variable loan
Repayments change each month depending on the interest charged to your loan.
I have a fixed rate loan
There’ll be no change to your fixed rate during your fixed term. This means your repayments aren’t affected by variable interest rate changes during your fixed rate term.
Do I need to do anything?
My repayments are on Direct Debit
- Principal & Interest repayments. Your minimum monthly repayment will automatically be adjusted to meet your new minimum monthly repayment amount.
- Interest Only repayments. Your repayment amount will be automatically updated to meet your Interest Only repayment.
To check and manage your Direct Debit repayments, search home loan Direct Debit in the Westpac App and follow the prompts.
In Online Banking, select your home loan > Select More and then home loan Direct Debit in the dropdown > Select your account and follow the prompts.
My repayments are not on Direct Debit
If you haven’t set up your repayments on Direct Debit, you’ll need to make arrangements to ensure you meet your new minimum repayment amount.
Get a home loan health check and rate review
Your Westpac home loan’s been designed to evolve with you, and we’re here to help fine-tune your loan so you can become mortgage-free sooner. Remember, there’s no fee to switch between our variable loans, or between Interest Only and Principal & Interest repayments. Call through the Westpac App to skip the security questions (tap Contact us).
FAQs
These variable rate changes will come into effect on Tuesday 3rd June 2025.
Your Westpac home loan’s been designed to evolve with you, and here are some of the changes you could make:
- Repay only the minimum amount – which could free up extra cash in the short term
- Repay more than the minimum – over time you could pay your loan off sooner
- Change repayment frequency
- Switch between P&I and IO
Visit our repayment hub to find out more.
You could change your variable Westpac home loan to a fixed home loan with no switching fee. See what splitting your loan might look like with our split loan calculator.
1. Estimate your repayments
Explore what any future rate changes could look like with our rate change calculator or repayment calculator.
2. Build a buffer
- To help pay off your loan faster, you could repay more than the minimum monthly amount. For example, if rates go down you could keep your repayments the same to build a buffer.
- If you have an offset account^^ linked to your Rocket Loan,you could park your spare money there, working to reduce your home loan interest.
- By switching your Principal & Interest repayments## from monthly to fortnightly or weekly, you will make an extra month’s repayment each year, reducing your total loan term and interest costs.
3. Adjust your loan
You could fine-tune your Westpac home loan – see the FAQs above.
What is Digital Mail?
You can choose to receive your repayment change letter via Digital Mail instead of traditional mail.
Digital Mail is a secure and faster way to receive updates to principal and interest repayments, within the Westpac App and Online Banking. These notifications are stored securely for up to 18 months in your Online Banking inbox, so they can’t be intercepted or lost.
When you have mail ready to view, we will send an email notification to the email address you have provided, letting you know there’s mail ready to view in your Online Banking inbox.
How to setup Digital Mail?
In the Westpac App
Make sure you have the latest version of the App.
- Go to the Smart Search bar, search Mail settings
- Tap Online for the account that you want to receive Digital Mail
- Tap Submit
To find your Digital Mail
Tap Contact Us in the header, then tap Inbox, or search for Inbox.
In Online Banking
- Go to Service > Preferences > Mail and select Mail settings
- Select Online for the account that you want to receive Digital Mail
- Select Submit
To find your Digital Mail
Select the Notifications tab, then choose Messages from the drop-down list.
Where do I find my Digital Mail?
In the Westpac App
- Tap Contact us in the header
- Tap Inbox, or search for Inbox
In Online Banking
- Select the Notifications tab
- Choose Messages from the drop-down list
Helpful resources
Changes to your repayments
Use our calculators to work out how interest rate changes may impact your loan repayments.
Tips to get ahead
Tackle interest rate changes and discover how to own your home sooner.
Terms & conditions
Conditions, credit criteria, fees and charges apply. 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 personal objectives, circumstances and needs into account. 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 295KB)
##Changing repayment amount or frequency: Cannot be performed on an interest-only loan. However, you may make extra repayments. For more details on interest-only home loans.
*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 loan-to-value ratio. 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 won't change during the life of the loan as the LVR changes.
^Flexi First Option Home Loans and Investment Loans: Life-of-loan discount is available for new Owner Occupier and Investment Property loans. This includes both Principal & Interest and Interest Only repayments. Offer does not apply to product switches. Interest rates are subject to change. Offer may be varied or withdrawn at any time.
^^Offset is available on a Rocket Repay Home Loan or a Rocket Investment Loan. You can link multiple offset accounts to a loan account, but each eligible offset account can link to just one loan account. If any named account holder of a transaction account is not a borrower on the loan account, the loan account cannot be linked to that transaction account.
The interest rates used in the calculator:
- are current, as indicated on our home loan interest rate pages;
- are Westpac's standard interest rates and include any package or promotional discounts; and
- are subject to change.
The output or result of these calculators:
- is subject to the assumptions which are subject to change;
- is prepared without knowing your personal financial circumstances. Before you act on the output of the calculators, please consider if it’s right for you. If you need more information, please call 1300 786 029. We recommend that you consult your financial adviser before taking out a loan;
- does not represent either a quote or pre-qualification for a loan;
- may not be taken into account if you apply for a loan with us as we will make our own calculations. When assessing ability to service a loan, Westpac may use an interest rate that is higher than the current interest rate for the loan requested