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Interest rate news

Home Loan Interest Rate News – Wednesday, 2 October 2019

Changes to a range of our variable interest rates

Westpac announced today a mortgage rate decrease of 0.15% for new and existing variable home loan customers, which will apply to both owner occupier and investor loans.

The following interest rate changes will come into effect on Wednesday, 16 October 2019.

  • Owner occupier principal & interest home loan variable rate decreasing by 0.15% p.a. to 4.83% p.a. (comparison rate 4.97% p.a.*)
  • Owner occupier interest only home loan variable rate decreasing by 0.15% p.a. to 5.42% p.a. (comparison rate 5.56% p.a.*)
  • Residential investment principal & interest home loan variable rate decreasing by 0.15% p.a. to 5.38% p.a. (comparison rate 5.52% p.a.*)
  • Residential investment interest only home loan variable rate decreasing by 0.15% p.a. to 5.64% p.a. (comparison rate 5.78% p.a.*).
  • Line of Credit Loan (Equity Access Loan) decreasing by 0.15% p.a. to 6.21% p.a.

Please note rate reductions will also apply to our Flexi First Option Loans and some grandfathered variable rate products.

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 variable home loan sooner by switching to principal and interest repayments, you can do so without paying a switch fee by contacting us on 132 032 and we’ll talk through your options.

What is the 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 March 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.

Terms & conditions

Credit criteria, fees and charges apply. Terms & conditions available on request. Based on Westpac Banking Corporation credit criteria, residential lending is not available for Non-Australian resident borrowers.

*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.