Westpac is the first of the big four banks to lift its variable interest rate for home loans, following the Reserve Bank’s decision to increase the cash rate by 0.50%,
From 21 June, Westpac will increase its variable interest rates by 0.50% per annum for new and existing customers, matching the RBA’s move.
Westpac is also introducing a term deposit rate of 2.25% per annum for 12 months to support customers with their savings from 9 June.
The bank said other deposit interest rates remain under review at this time.
“We know a change in interest rates affects every budget differently,” said Westpac consumer and business banking chief executive Chris de Bruin (pictured).
“Our customers have managed their finances carefully during the pandemic, with many putting more funds aside in their savings and offset accounts. This means the majority of our customers are ahead on mortgage repayments and have a buffer available to help them manage an interest rate increase.”
Read more: RBA raises official cash rate again
De Bruin said to help customers through the changing interest rate environment, Westpac offered its customers a range of tools to help them manage their home loan repayments.
“Customers can use our online mortgage repayment calculator to see how adjusting their loan amount, term or interest rate will impact them or help pay off their loan sooner,” he said.
“For customers who need some extra help or who are in financial difficulty, we have our specialist teams standing by who will work with them to tailor a financial solution to meet their needs. We encourage customers doing it tough to call us as soon as possible.”
Westpac is encouraging its customers to contact their local branch directly or visit westpac.com.au, or call Westpac Customer Care on 132 032.
