Westpac will raise mortgage interest rates by 0.5 percentage points, fully impacting the Reserve Bank’s latest official rate hike to customers.
Sydney-based banking giant was the first major lender to announce its interest rate decision on Tuesday night, saying it would increase variable rates on home loans by 0.5 percentage points from 21 June.
Westpac will raise interest rates on variable home loans by 0.5 percentage points. Credit: Will Willitts
He said it would also offer a one-year deposit rate of 2.25 percent, and other types of deposits were under review.
Westpac’s chief executive of consumer and corporate banking, Chris de Bruin, said most of his customers were advancing in the repayment of their loans, but noted options for customers who needed help. These could include the ability to adjust loan terms, or for customers with financial stress, through the lender’s hardship program.
“Our clients have carefully managed their finances during the pandemic, and many have put more funds aside in their savings and clearing accounts. This means that most of our clients are advanced in repaying mortgages and they have a buffer available to help them manage rising interest rates, “de Bruin said.
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“For customers who need additional help or are in financial difficulties, we have our specialized teams at our disposal who will work with them to adapt a financial solution to their needs. We encourage customers who find it difficult to call us. as soon as possible “.
Westpac Commonwealth Bank’s main rivals, ANZ Bank and National Australia Bank had not announced their interest rate decision at the time of writing.
The move comes after the Reserve Bank surprised the market by raising the cash rate by 0.5 percentage points on Tuesday to 0.85 percent and warned that there would be more rate hikes.