Westpac has confirmed it will lift variable home loan rates by 25 basis points, in line with the RBA’s latest move to increase the cash rate to 4.10%, with impacted borrowers to realise higher rates from 31 March.

The bank’s reaction is consistent with its usual implementation window, having historically moved rates a fortnight after a central bank change.

A 25 basis point increase is expected to push Westpac’s lowest advertised variable rate from 5.49% p.a. to 5.74%% p.a. - a special offer advertised on its Flexi First Option home loan product for borrowers applying online.

For a borrower with a $700,000, 30-year mortgage, the rate change could add around $110 to monthly repayments.

"With overseas conflict impacting inflation and cost of living, we know these are uncertain times for many of our customers," Westpac Chief Consumer Executive Carolyn McCann said.
"We are here to help, and if customers are concerned, we urge them to contact us as early as possible so we can talk through the support options available."

It comes just weeks after Westpac hiked fixed home loan rates, with the lowest advertised at the bank now 5.79% p.a. (6.26% p.a. comparison rate*).

Westpac joins CommBank and NAB in announcing it will pass on the March hike in full to variable mortgage holders.

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

Borrowers should review their repayment settings once the new rate takes effect. 

Unlike many major lenders, Westpac does automatically reduce minimum home‑loan repayments when rates fall.

This means borrowers who didn’t choose to keep paying above the minimum after previous rate cuts may feel the impact of the latest hike more quickly, as their repayments may no longer sit above the new required minimum.

Customers who set their repayments manually - or rely on a fixed transfer amount - may need to update their payment to ensure they meet the new minimum once the rate change applies.

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LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.54% p.a.
5.58% p.a.
$2,852
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.44% p.a.
5.35% p.a.
$2,820
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 Disclosure
5.64% p.a.
5.68% p.a.
$2,883
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Offset
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
 Disclosure
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning

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