Westpac has announced interest rate changes for home loan and deposit customers following the Reserve Bank of Australia's decision to decrease the cash rate by 0.25% to 3.60%.
For home loan customers:
- Westpac will decrease home loan variable interest rates by 0.25% p.a. for new and existing customers, effective 26 August.
For deposit customers:
- Westpac Life total variable rate with bonus interest will decrease by 0.25% p.a. to 4.25% p.a., effective 22 August*.
- Westpac eSaver total variable rate with a five-month introductory rate will decrease by 0.25% p.a. to 4.25% p.a. for new customers applying online, effective 22 August**.
Speaking about the change, Westpac Chief Executive, Consumer, Carolyn McCann said: "Following the Reserve Bank's decision, we're making further reductions to home loan interest rates. We know many people continue to manage cost of living pressures and three rate cuts this year will no doubt provide some relief to household budgets."
Westpac analysis shows this rate change, together with the previous reductions announced in February and May, means customers could be saving an extra $266 per month or $3,192 per year based on a $500,000 home loan with principal and interest repayments.
"We're seeing customers use the extra breathing room in a variety of ways - from paying down their loans faster to building up savings buffers or covering everyday expenses," McCann added.
Westpac customers paying principal and interest will be notified directly about what this will mean for their repayments and how they can make changes, which includes via the app, the website or by contacting the bank.
