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Westpac the last big 4 bank to hike: see how mortgage rates now stack up
Westpac is the last big four bank to announce it is passing on the full RBA hike to variable rate mortgage customers.
From 20 July, Westpac variable home loan rates for new and existing customers will go up by 0.50 percentage points.
Westpac has followed major banks CBA, NAB and ANZ, which all announced 0.50 percentage point hikes today, following yesterday’s RBA cash rate hike.
Westpac variable rates for owner-occupiers – impact of 0.50% hike – effective 20 July
Calculations are based on a $500,000, 25-year loan (70% LVR)
| Old rate | New rate | Increase in repayments, $500K | |
| Standard variable | 5.23% | 5.73% (5.83% for LVRs over 80%) | $149 |
| Discounted variable | 3.94% | 4.44% | $139 |
| Lowest variable | 2.64% for 2yrs then 3.04% | 3.14% for 2yrs then 3.54% | $129 |
Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. New rates effective 20 July 2022.
Once the variable hikes kick in, there will be no home loan rates advertised by the big four banks that are under 3 per cent.
Lowest big four bank variable rates for owner-occupiers: post-July RBA hike
| Rate type | Lowest variable | Package rate | Effective date |
| CBA | 3.29% | 5.10% | 15th July 2022 |
| Westpac | 3.14% for 2yrs then 3.54% | 4.44% | 20th July 2022 |
| NAB | 3.44% | 4.92% | 15th July 2022 |
| ANZ | 3.29% | 4.24% | 15th July 2022 |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.
What is Westpac doing for savers?
Westpac has also announced it is increasing the base rate on its Life account by 0.50 percentage points to 1.35 per cent, effective 22 July.
At this stage, Westpac has not announced changes to its eSaver, Bump and Spend&Save accounts.
Like CBA, NAB and ANZ, Westpac has put a new term deposit special on the table at rate of 2.50 per cent, however, this rate is available for terms of 12- up to 23-months, available from 8 July.
Westpac savings changes – effective 22 July
| Old max rate | New max rate | Change | |
| Life | 0.85% | 1.35% | +0.50% |
| Spend&Save (ages 18-29) | 2.50% | N/A | No change |
| eSaver | 0.75% for 5 mths then 0.05% | N/A | No change |
Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.
All big four banks have now announced they will increase their bonus saver accounts by the full 0.50 percentage points this month.
Big four bank bonus savings accounts – post July hike
| Big four account | Change to max rate | New max rate | Effective date |
| CBA GoalSaver | +0.50% | 1.25% | 15 July |
| Westpac Life | +0.50% | 1.35% | 22 July |
| NAB Reward Saver | +0.50% | 1.00% | 15 July |
| ANZ Progress Saver | +0.50% | 1.15% | 17 July |
Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.
RateCity.com.au research director, Sally Tindall, said: “The big banks have once again played follow the leader, hiking one after the other by the full 0.50 percentage points.”
“This means variable borrowers across the country will be subjected to sizable hikes in their monthly repayments,” she said.
“These hikes could push more borrowers into mortgage stress, making it tricky for many families to balance the budget each month.
“If you’re spending a sizable chunk of your income on your mortgage, work out ways to give yourself a bigger buffer. Making small adjustments to the way you live week-to-week, such as buying take-away coffees as a treat rather than the norm, might seem insignificant, but they all add up.
“Now is a great time to review your bills, including your mortgage, to make sure you’re on the best deals possible,” she said.
Disclaimer
This article is over two years old, last updated on July 6, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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