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- Westpac matches CBA and ANZ, hiking by 0.25% for variable customers AND hike select savings accounts
Westpac matches CBA and ANZ, hiking by 0.25% for variable customers AND hike select savings accounts
Australia’s second largest lender, Westpac, has tonight announced it will pass on the cash rate hike in full to its variable rate mortgage customers, effective 17 May 2022.
Westpac variable rates for owner-occupiers (70% LVR)
Calculations are based on an existing customer, 5 years in to a 30-year loan.
| Old rate | New rate | Increase in repayments, $500K | |
| Standard variable rate | 4.48% | 4.73% | $71 |
| Discounted variable rate | 3.19% | 3.44% | $66 |
| Lowest variable rate | 2.09% | 2.34% | $62 |
Source: RateCity. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. An LVR of 70% applies to the above rates. Rates effective 17 May.
How the big four banks have responded so far
| Variable mortgage hikes | New lowest variable rate | Savings hikes | Effective date | |
| CBA | ||||
| Westpac | 0.25% | 2.34% | Up to 0.25% | 17 May |
| NAB | TBC | TBC | TBC | TBC |
| ANZ |
Source: RateCity. Lowest rates are for owner-occupiers paying principal and interest. LVR requirements apply.
Westpac increases savings rates 0.25% on select accounts
Westpac has also announced it will be passing on the full hike to two of its popular deposit accounts – its ‘Life’ account for all adults and its retiree account: “55+ and Retired”. The rates on its other savings accounts remain unchanged.
| Max current rate | Max new rate | |
| Life account (all adults) | 0.25% | 0.50% |
| 55+ and Retired (deposits over $50K) | 0.10% | 0.35% |
| Life Spend&Save
(young adults 18-29 yrs) | 2.00% | No change |
| e-Saver | 0.25% for 5 mths then 0.05% | No change |
| Bump (ages up to 18) | 0.45% | No change |
Source: RateCity. Conditions apply for max rate.
RateCity research director, Sally Tindall, said: “Three of the big four banks have now hiked mortgage rates in line with the RBA.”
“While these hikes were expected, some customers will still be disappointed, particularly because both CBA and Westpac failed to pass on the last two cash rate cuts to their variable borrowers back in 2020,” she said.
“Westpac is hiking its goal saver and retiree accounts by the full 0.25 per cent, however, its savings accounts for kids and young adults have missed out.
“It’s positive to see Westpac hike at least some deposit rates in full, but it would have been good to see it applied across the board.
“Westpac, like other banks, is bursting at the seams with cash. This is making it difficult for the bank to apply this hike to all savings accounts.
“Westpac might have doubled the maximum rate on its Life account, however, at 0.50 percent, it’s still 0.85 per cent behind the market leaders in this space, who are yet to announce if they’re hiking.”
The latest APRA statistics for March show Australian households have a total of $1.26 trillion in the bank – an increase of over $272 billion since COVID.
“Serious savers should find out what their bank intends to do. If your savings rate isn’t going up, shop around and see if you can get a better deal elsewhere,” she said.
Household deposits in banks: APRA
| Feb-2020 (pre-COVID) | Now (March 2022) | Change since COVID-19 | |
| Deposits by household | $989.2 billion | $1.26 trillion - record high | $272.4 billion 28% |
Source: RateCity. Deposits data released by APRA, 29 April 2022.
Big four bank: current conditional savings rates
| Bank | Account | Max rate |
| CBA | GoalSaver | 0.25% |
| Westpac | Life | 0.50%* |
| NAB | Reward Saver | 0.25% |
| ANZ | Progress Saver | 0.15% |
Source: RateCity. Conditions apply for max rate. Westpac rate effective May 17.
- Find out who has moved at RateCity.com.au’s RBA rate tracker
Disclaimer
This article is over two years old, last updated on May 3, 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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