The big four bank announced its intent to pass the cut on shortly after the RBA board announced its decision on Tuesday afternoon.
The bank's variable-rate home loan borrowers will realise the cut on 26 August, in line with Westpac's history of handing down rate changes 14 days after a central bank move.
That means Westpac borrowers will be waiting a few days longer than those at CommBank – which has confirmed it will pass the cut on from 22 August.
A 25 basis point reduction is expected to see Westpac's lowest advertised variable rate fall from 5.59% p.a. to 5.34% p.a., though this will vary depending on the borrower's loan size, repayment type, and loan-to-value ratio (LVR).
For a borrower with a $700,000 mortgage over 30 years, that change could reduce monthly repayments by around $110.
"We know many people continue to manage cost of living pressures and three rate cuts this year will no doubt provide some relief to household budgets," said Westpac consumer chief executive Carolyn McCann.
"We’re seeing customers use the extra breathing room in a variety of ways – from paying down their loans faster to building up savings buffers or covering everyday expenses."
Westpac joins CommBank and Macquarie in confirming that it will pass on the full August rate cut to variable rate mortgage holders.
What could a rate cut mean for your wallet? Mortgage Repayment Calculator
Unlike some lenders, Westpac automatically adjusts repayments in line with interest rate changes, meaning borrowers will start seeing lower repayments without needing to make a request.
That could be welcome news for Westpac customers looking to ease cost-of-living pressures quickly – though continuing to pay their pre-cut repayments could help borrowers pay off their home loans faster, saving them interest over the longer term.
See how other lenders are responding to the RBA's August rate cut: Your Mortgage live coverage
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.29% p.a. | 5.33% p.a. | $2,773 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.19% p.a. | 5.10% p.a. | $2,742 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
5.39% p.a. | 5.43% p.a. | $2,805 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Bidgee on Wikimedia Commons
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