Big bank lifts most home loan rates, just weeks after cuts

Tuesday, 17 March 2026

The bank was increasing home loan rates, as well as term deposit rates, in its latest round of changes.

Westpac is increasing most of its home loan rates, effective Wednesday, with rises between 0.10% and 0.30%, for all terms from one to five years.

The bank’s ‘special’ one year term rate was moving to 4.59%, up 0.10%, while the five-year term rate was moving to 5.59%, up 0.30%. All the others in the ‘special’ class were moving up as well, with only the 6-months rate staying unchanged, at 4.49%.

Term deposit rates were also increasing, the bank said in a statement on Tuesday morning, with Westpac claiming to offer the best one-year deal, at 3.75%, up 0.20%.

The bank’s managing director of product, sustainability and marketing, Sarah Hearn, said in the statement the funding costs for lenders had been driven up by significant increases in longer-term wholesale rates in recent weeks.

The bank was absorbing some of those costs while passing on higher rates to savings customers, Hearn said.

Westpac managing director of product, sustainability and marketing Sarah Hearn.

The increases came less than a month after Westpac had announced cuts to some of its longer term offerings. In February, they had cut home loan rates over 3-5 years.

The bank’s standard home loan rates had all increased, except for the 6-months rate. Westpac’s one-year rate was, from Wednesday, 5.19%, while the five years rate was 6.19%, for example.

Hearn said the market conditions meant people should be thinking about their finances at this time.

“In an environment of rising interest rates, it’s a good time to set financial goals and plan how to achieve them,” Hearn said. “We encourage both borrowers and savers to get in touch with us so we can help on that journey.”