When will Westpac lift variable rates after RBA move?

Westpac has confirmed it will increase variable home loan rates by 25 basis points, in line with the Reserve Bank of Australia’s (RBA) latest cash rate hike.

The big four bank announced its intent to pass the hike on shortly after the RBA board announced its decision on Tuesday afternoon.

The bank’s variable rate home loan borrowers will realise the change on 17 February, in line with Westpac’s history of handing down rate changes 14 days after a central bank move. 

That means Westpac borrowers may be waiting a few days longer than those at CommBank and ANZ.

Westpac’s lowest variable mortgage rate expected to rise to 5.94% p.a.

A 25 basis point increase is expected to see Westpac’s lowest advertised variable rate rise from 5.24% p.a. (5.25% p.a. comparison rate*), available on its Flexi First Option product, to 5.49% p.a. 

For a borrower with a $700,000 mortgage over 30 years, that change could lift monthly repayments by around $110 .

“We understand that an interest rate increase may add pressure to household budgets,” Westpac chief executive, consumer Carolyn McCann said.

“For those who need support, we are ready to help.”

Westpac joins CommBank and ANZ in confirming that it will pass on the full February rate move to variable rate mortgage holders.

What could a rate hike mean for your wallet? Mortgage Repayment Calculator

What do Westpac home loan holders need to do?

Westpac is one of few major lenders that automatically change variable rate borrowers’ home loan repayments in the wake of RBA movements. 

That means, after the hike takes effect, borrowers should check whether their minimum repayment has changed and whether their payment method will automatically update.

Those who have automated deposits that fund their mortgage repayments will likely want to update those to reflect their new repayments.

Westpac customers who went out of their way to maintain higher repayments in the face of last year’s cash rate cuts may find their repayments remain the same. 

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