Westpac hikes mortgage rates by 0.25%, stays quiet on savings accounts

Westpac has announced it will pass on the latest 0.25 percentage point RBA hike to its variable mortgage customers.

This will take its lowest variable rate to 5.84 per cent, however, this rate increases by 0.40 percentage points after two years.

Westpac’s higher mortgage rates will be effective for both new and existing customers on 20 June.

Westpac new customer variable rates for owner-occupiers – effective 20 June

Source: RateCity.com.au. Assumes borrower has a loan-to-value ratio of 70% or less. New rates effective 20 June 2023.

What is Westpac doing for savers?

At this stage, Westpac is not passing on a rate increase to its savings accounts. The bank has noted, however, that all of its savings rates are under review.

The bank will offer a new term deposit rate of 4.50 per cent for 12 to 23 months, effective 9 June.

The RateCity.com.au database shows nine banks have a term deposit rate above 4.50 per cent for 12 months, while six banks offer a term deposit over 4.50 per cent for two years, based on a $50,000 deposit.

RateCity.com.au research director, Sally Tindall, said: “Westpac has been quick to announce hikes for home loan customers, but has left savers in the dark.”

“Westpac savers should use this time to pressure their bank to pass this rate hike on in full,” she said.

“A decent ongoing savings rate after this latest hike filters through will be over 5 per cent. Anything less, and it could be time to break up with your bank.

“Many home loan customers will be wondering just how on earth they are going to pay for rate hike number 12, when they are already struggling to balance the budget.

“Westpac might be turning its back on the hunt for new customers, but it is still keen to keep hold of existing ones. If you call your bank you could find they offer you a rate cut within the space of just one phone call,” she said.

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