Alongside NAB’s rate hike, Westpac also announced a lift in their interest only mortgage rates for investors. They also highlight switching to a principal and interest repayment loan offers a lower rate.
Effective 16 December 2016, Westpac will increase the interest rates of some of its Interest Only variable home lending products, including:
- Variable home loan (owner occupier) rate for customers with Interest Only repayments: by 0.08% to 5.41% per annum (comparison rate 5.55% per annum*);
- Variable residential investment property loan rate for customers with Interest Only repayments: by 0.08% to 5.68% per annum (comparison rate 5.82% per annum*).
- Equity Access loan rate: by 0.15% to 5.80% per annum.
Our interest rates are constantly under review, as market and economic conditions change.
Switching from Interest Only to principal and interest repayments
We offer lower interest rates to customers who make principal and interest repayments to encourage them to pay down their debt and own their home faster.
If you wish to pay your home loan sooner by switching to principal and interest repayments, you can do so by contacting us on 132 558 and we’ll talk through your options.
Customers with Premier Advantage Package can switch at any point in time at no additional cost.
Impact on my repayments?
For Interest Only home loans, your repayments are adjusted automatically. The repayments will change from the first repayment date after the interest rate change becomes effective.
