Westpac interest rates

2022 - 6 - 8

Post cover — Image courtesy of "Canstar"

CBA, Westpac, NAB and ANZ pass on RBA rate hike in full - how ... (Canstar)

Check if your bank has increased its interest rates in response to the RBA's announcement of a June cash rate hike.

Virgin Money has said that it will increase its variable home loan interest rates by 50 basis points, with the change effective for new and existing customers from 14 June, 2022. BOQ subsidiary ME has said it will increase its variable home loan interest rates by 50 basis points, with the change effective for new and existing customers from 18 June 2022. This means that owner-occupiers on a $500,000 home loan with 80% LVR on the bank’s Economy Variable Home Loan product could see their interest repayments increase by around $132 per month. Macquarie Bank has said that it will increase its variable home loan interest rates by 50 basis points, with the change effective from 17 June, 2022. We’ve crunched the numbers to give an indication of what the bank’s rate increase could mean for monthly mortgage repayments. We’ve crunched the numbers to give an indication of what the bank’s rate increase could mean for monthly mortgage repayments. We’ve crunched the numbers to give an indication of what the bank’s rate increase could mean for monthly mortgage repayments. We’ve crunched the numbers to give an indication of what the bank’s rate increase could mean for monthly mortgage repayments. Lowest variable rate All four of Australia’s largest lenders have now responded to yesterday’s RBA cash rate hike by announcing increases to their variable home loan rates. Aussie home loan borrowers may well be wondering how their monthly repayments will change after today’s cash rate hike, and whether their bank will pass it on in full. It’s also the biggest increase to the cash rate in a single month since the year 2000.

Westpac passes on RBA rate rise in full (The Sydney Morning Herald)

Westpac is the first major bank to announce its interest rate decision, saying it would increase mortgage interest rates by 0.5 percentage points.

This means the majority of our customers are ahead on mortgage repayments and have a buffer available to help them manage an interest rate increase,” de Bruin said. We encourage customers doing it tough to call us as soon as possible.” These could include the possibility of adjusting loan terms, or for customers in financial stress, using the lender’s hardship program.

Commonwealth Bank, ANZ and NAB join Westpac to raise variable ... (ABC News)

All three banks said they would raise home-loan variable interest rates by half a percentage point from June 17. The new standard variable interest rate for ...

The CBA, Westpac and Deutsche Bank forecasted another half a percentage point increase in July, while ANZ predicted the RBA would hike by a quarter of a percentage point next month and then deliver a half a percentage point increase in August. The rate rise for June is the biggest hike since 2000 and takes the cash rate target to 0.85 per cent in an attempt to curb surging inflation. ANZ offered a term deposit rate of 2.25 per cent for 11 months from June 13 and NAB introduced a term deposit rate of 2.25 per cent for a year from June 17. When the banks pass on the rate lift in full, the rate rise will add $133 a month on a loan worth $500,000 over 25 years, and $265 a month on a loan worth $1 million. On top of that, CBA will extend availability of a term deposit rate of 2.25 per cent for 18 months which was introduced in the May hike. The new standard variable interest rate for owner-occupiers paying principal and interest will be 5.30 per cent for the CBA customers.

Interest rates Australia: Westpac becomes first bank to pass on ... (The Australian Financial Review)

Westpac said it would pass on the full 50bp rate rise, amid questions about the “transmission mechanism” as banks hold repayments for borrowers who are ...

Higher LVRs [loan to value ratios] and levels of delinquency for this segment is a concern if this trend continues.” James Eyerswrites on banking, fintech and technology. This includes first home buyers who were banking on past statements from RBA governor Philip Lowe that rates would remain at record lows until 2024. This is because all the big four banks kept customers’ monthly loan payments steady as the cash rate fell – unless customers asked them to drop it. Now that rates are rising, banks will do the same thing. We encourage customers doing it tough to call us as soon as possible,” he said.

Westpac lifts variable interest rate (Australian Broker)

Westpac is the first of the big four banks to lift its variable interest rate for home loans, following the Reserve Bank's decision to increase the cash ...

This means the majority of our customers are ahead on mortgage repayments and have a buffer available to help them manage an interest rate increase.” We encourage customers doing it tough to call us as soon as possible.” “For customers who need some extra help or who are in financial difficulty, we have our specialist teams standing by who will work with them to tailor a financial solution to meet their needs.

Big four banks make major call on rates (NEWS.com.au)

All of Australia's big four banks have increased their mortgage rates in line with Tuesday's RBA interest rate rise.

By Christmas next year they could be $652 more a month in total.” “Don’t just assume you can take these hikes in your stride. But in many cases, that’s just not true. Customers can use our online mortgage repayment calculator to see how adjusting their loan amount, term or interest rate will impact them or help pay off their loan sooner. Stream more finance news live & on demand with Flash. 25+ news channels in 1 place. We encourage customers doing it tough to call us as soon as possible.” New to Flash? Try 1 month free. Our customers have managed their finances carefully during the pandemic, with many putting more funds aside in their savings and offset accounts. This means the majority of our customers are ahead on mortgage repayments and have a buffer available to help them manage an interest rate increase,” said Westpac Consumer and Business Banking Chief Executive, Chris de Bruin. “Banks are likely to pass the RBA’s rate hike on in full to their variable rate customers and deposit rates will rise further,” he said in a statement following the RBA announcement. “While the rate hike adds to the cost of living the RBA has little choice but to ‘normalise’ interest rates.” “To help customers through the changing interest rate environment, we offer our customers a range of tools to help them manage their home loan repayments.

Westpac, NAB, CBA and ANZ pass on Reserve Bank of Australia's ... (7NEWS.com.au)

A major bank has moved quickly to pass on the interest rate hike - after the biggest jump in more than 20 years. Will the others follow?

“Higher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago. “The board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead.” “Given the current inflation pressures in the economy, and the still very low level of interest rates, the board decided to move by 50 basis points. “(The) increase in interest rates by the board is a further step in the withdrawal of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic,” Lowe said in a statement. “The resilience of the economy and the higher inflation mean that this extraordinary support is no longer needed. The big four banks have announced they will pass on the interest rate hike after the Reserve Bank of Australia decided to lift the cash rate for the second consecutive month.