Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 0.50%, Westpac has announced interest rate changes for home loan and deposit customers.
From 20 July, Westpac will increase home loan variable interest rates by 0.50% p.a. for new and existing customers.
Westpac will also increase the standard variable base rate for Westpac Life savings customers by 0.50% p.a. from 22 July, bringing the total variable interest rate to 1.35% p.a.
Customers will be able to access a new Term Deposit offer of 2.50% p.a. for terms between 12 to 23 months from 8 July.
“We considered several factors in making this decision including the 0.50% rise in the official cash rate and ongoing increases in the cost of funding, as well as the needs of both borrowers and depositors,” said Chris de Bruin, Westpac Chief Executive Consumer and Business Banking.
“To further support savers following a period of low rates, we’re increasing the standard variable base rate on Westpac Life, one of our most popular savings accounts, and introducing a new term deposit rate.
“We know that some customers will be reassessing their household budgets as home loan interest rates rise. While the majority of our home loan customers are ahead on repayments and in a good position to adapt to interest rate changes, some may find it more challenging.
“We have a dedicated team to assist customers potentially facing financial difficulty, who provide personalised support including giving customers more time to get their finances back on track. We’re also engaging with our customers coming off fixed rate terms to help them understand the home loan options available and plan for future adjustments,” Mr de Bruin said.