Second big bank raises home rates

Westpac will follow ANZ in increasing its home loan interest rates with hikes of between 40 and 64 basis points from today.

ANZ was the first major bank to move, lifting its rates yesterday following the Reserve Bank’s move last Wednesday to raise the official cash rate by 75 basis points to 4.25 per cent.

Westpac’s floating and offset rate will rise 64 basis points to 7.99 per cent. Its standard fixed-term mortgage rates will rise by 40 to 50 basis points with the one-year rate set to rise to 7.09 per cent and the two-year rate to 7.29 per cent. Like ANZ, all of Westpac’s standard fixed-term rates will rise to over 7 per cent.

While its special rates remain under 7 per cent borrowers have to have a minimum of 20 per cent equity or deposit to access those. The special fixed-term one-year rate will rise to 6.49 per cent and the two year rate to 6.69 per cent.

Westpac will also increase its saving and term deposit rates. Its oneyear term deposit rate will rise 60 basis points to 5.1 per cent.

It will pass on the full 75 basis points to some savers with interest rising on its notice saver account to 3.6 per cent and its bonus saver/pie (portfolio investment entities) fund rising to 3.35 per cent.