Westpac follows NAB in rate hike

Westpac is the second big bank to jack up rates this week. Picture: Hollie Adams / The Australian

MORE borrowers are being hit by out-of-cycle interest rate hikes after Westpac today announced both owner occupiers and investors would see increased costs to their loans.

The banking giant’s announcement comes just 24 hours after National Australia Bank was the first of the big four to increase rate deals.

Variable rate deals are being hiked for owner occupiers that will seem an increase by 0.03 per cent to 5.32 per cent on principal and interest loans.

For owner occupiers paying interest-only they will see larger hikes of 0.08 per cent and their rate climb to 5.49 per cent.

Investors making principal and interest repayments will see rates rise by 0.23 per cent to 5.79 per cent.

Westpac has followed rival NAB by raising its variable mortgage rates for owner-occupiers and investors.

However investors paying interest-only will see variable rates climb by 0.28 per cent to 5.96 per cent.

NAB yesterday hit borrowers with hikes of 0.07 per cent to 5.32 per cent for owner occupiers while investors saw variable rates climb from 5.55 per cent to 5.8 per cent.

NAB stands to pocket $347 million per year — or $952,000 per day — from the rate increase.

“Today’s changes are in response to increasing funding costs,” Westpac consumer bank chief executive George Frazis said.

Commonwealth Bank and ANZ are yet to make any announcements this week on rate movements.

These latest rises by Westpac and NAB come just one week after the Reserve Bank of Australia kept the cash rate on hold at 1.5 per cent.

sophie.elsworth@news.com.au

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