subscribe to our newsletter
Westpac announces further rate hikes

Westpac announces further rate hikes

The major bank has lifted mortgage rates on its defence services home loan products, off the back of its 14 basis point hike in September.

Effective as of 5 October, Westpac announced 9 basis point increases on its Defence Service Home Standard and Defence Service Home Intermediate products, which apply to Defence Service Home Loans offered by the bank.

Westpac stated that its rate increases follow the Department of Veteran Affairs’ decision to increase the Defence Service Housing benchmark rate to 5.39 per cent.

Westpac’s changes are as follows:

  • Defence Service Home Standard product — up by 9 basis points to 3.89 per cent
  • Defence Service Home Intermediate product — up by 9 basis points to 3.89 per cent

Westpac noted that the Defence Service Home Standard rate is set at the benchmark rate less 1.50 per cent, and capped at 6.85 per cent, while the Defence Service Home Intermediate rate is capped at 4.50 per cent.

In August, Westpac increased rates on all of its variable home loan products by 14 basis points, making it the first major bank to lift rates out of cycle amid rising funding costs.

Commonwealth Bank and ANZ followed Westpac’s suit in September, lifting rates by 15 and 16 basis points, respectively.

[Related: Westpac hikes mortgage rates]

Westpac announces further rate hikes
mortgagebusiness

Latest News

The central bank has warned that an increase in the non-bank sector’s market share could pose a threat to financial stability. ...

The head of Australia’s largest bank has been forced to confront the devastating impact the group’s misconduct has had on the wellbeing ...

The Australian Prudential Regulation Authority has responded to the Hayne commission interim report by saying that a good banking system is ...

FROM THE WEB

podcast

LATEST PODCAST: Emotional intelligence and its role in managerial structure

Is enough being done to ensure responsible lending?