Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 0.50%, Westpac has announced a range of interest rate changes for home loan and deposit customers.
For home loan customers
- Home loan variable interest rates will increase by 0.50% p.a. for new and existing customers, effective 18 August.
- Westpac will also offer a special four-year fixed rate of 4.99% p.a. for owner-occupied customers on principal and interest repayments with the Premier Advantage Package*, effective 9 August.
For deposit customers
- Westpac Life total variable rate with bonus interest will increase by 0.50% p.a. to 1.85% p.a., effective 18 August.
- Under Westpac’s Spend&Save offer for 18-29 year olds, eligible customers can earn a total variable rate of 3.25% p.a., an increase of 0.50% p.a., effective 18 August.
- Westpac eSaver standard variable rate will increase by 0.55% p.a. to 0.85% p.a. for new and existing customers. The five-month total introductory variable rate for new eSaver customers will increase to 1.80% p.a., effective 18 August.
- Customers will be able to access a new Term Deposit offer of 3.00% p.a. for 12 to 23 months, effective 8 August.
“With every interest rate change, we consider multiple factors and stakeholders, including homeowners and savers. We also take into account the change to the cash rate and other increases to the cost of funding our loans,” said Chris de Bruin, Westpac Chief Executive, Consumer and Business Banking.
“We understand the change in home loan interest rates will mean many customers will be reviewing their budgets. While more than two thirds of customers are ahead on repayments, we recognise after several successive interest rate rises, some may be feeling more financial pressure. We’re here to support these customers and encourage them to give us a call.
“We’re also putting a competitive fixed rate offer on the table to help give our customers more options as interest rates rise. New and existing customers could fix their loan for four years which may provide more certainty over their repayments, or split their loan between fixed and variable rates.
“Over the past few months, we’ve continued to increase our rates for savers across a range of products. Following the latest cash rate change, we will lift interest rates again on two of our most popular accounts, Westpac Life and eSaver, which will boost the returns on savings for many of our customers,” said Mr de Bruin.