Westpac bank has announced they are increasing the interest rates on variable rate home loans from September 19. Here's how it affects you.
Smaller banks started to life their interest rates earlier this year and Westpac is the first of the big four banks to follow suit. Westpac will increase their variable home loan rate by 14 basis points on September 19.
Both owner-occupiers and investors will be impacted by the 14 basis point increase. Owner-occupiers with a standard variable home loan will see their interest repayments increase to 5.38% while interest only loans will increase to 5.97%.
In dollar terms that is approximately $35 per month for an average mortgage of $300,000. You can use a mortgage calculator to see what changes this increase makes to your loan repayments.
The rates for investment properties will increase to 5.93% for those with principal and interest repayments and 6.44% for interest only loans.