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Westpac and NAB announce RBA mortgage hikes but some savers miss out
NAB and Westpac have announced they are passing on today’s 0.25 percentage point RBA hike in full to their variable mortgage rates.
While Westpac will also hike some savings rates, NAB says its savings rates currently remain under review.
- Find out who has moved at RateCity.com.au’s RBA rate tracker
Westpac variable home loan changes
From 18 October, Westpac mortgage rates for new and existing customers will go up by 0.25 percentage points.
Westpac variable rates for owner-occupiers – effective 18 October
| Old rate | New rate | Increase in repayments, $500K | |
| Lowest variable | 3.99% for 2yrs then 4.39% | 4.24% for 2yrs then 4.64% | $69 |
| Discounted variable rate | 5.44% | 5.69% | $75 |
| Standard variable rate | 6.73% | 6.98% | $79 |
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 18 October 2022.
What’s Westpac doing for savers?
Westpac has announced it is increasing the rate on its Life and Spend&Save account for young savers by 0.25 percentage points.
However, its eSaver account will remain at 0.85 per cent for existing customers, with the bank only increasing the introductory rate for new customers.
Westpac savings changes – effective 18 October
| Old max rate | New max rate | Change | |
| Life | 2.35% | 2.60% | 0.25% |
| Bump (ages under 18) | 2.35% | 2.35% | No change |
| Spend&Save (ages 18-29) | 3.50% | 3.75% | 0.25% |
| eSaver | 2.30% for 5mths then 0.85% | 2.55% for 5mths then 0.85% | 0.25% for 5 months then no change |
Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts. New rates effective 18 October 2022.
NAB variable home loan changes
NAB will increase its variable mortgage rates for new and existing customers on October 14 by 0.25 percentage points.
NAB variable rates for owner-occupiers – effective 14 October
| Old rate | New rate | Increase in repayments, $500K | |
| Lowest variable | 4.24% | 4.49% | $70 |
| Discounted variable rate | 5.92% | 6.17% | $76 |
| Standard variable rate | 6.77% | 7.02% | $79 |
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 14 October 2022.
However, the bank has not announced whether it plans to increase the rates on its popular savings accounts, with these rates remaining under review.
Current NAB savings rates – no changes announced today
| NAB | Max rate |
| Reward Saver | 2.25% |
| iSaver | 2.30% for 4 months then 0.85% |
Source: RateCity.com.au.
RateCity.com.au research director, Sally Tindall, said: “What a welcome surprise to see two of the big four banks come out quickly to let their mortgage customers know how their rates are changing.”
“While Westpac has announced it will hike several savings rates this month, it’s disappointing to see NAB leave its savers in the dark,” she said.
“While Westpac is increasing its Life and Spend&Save account rates by 0.25 percentage points, existing customers with eSaver accounts have missed out at this stage.
“Westpac eSaver and NAB iSaver customers are still only earning an ongoing rate of 0.85 per cent, which is pitiful considering the cash rate has just hit 2.6 per cent.
“The highest ongoing savings rate for all adults is currently 3.6 per cent, and there’s a chance this could rise if ING and Virgin Money decide to pass on this month’s RBA rate hike.
“Let’s hope CBA and ANZ go one up on Westpac and hike all of their savings account rates this month,” she said.
Disclaimer
This article is over two years old, last updated on October 4, 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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