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)

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

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

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

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.

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