Sydney, April 25, 2026, 07:42 AEST
Westpac Banking Corp (WBC.AX) bumped up fixed home-loan rates by 15 basis points—0.15 percentage point—the second hike in just three weeks. Its lowest fixed owner-occupier rate now clocks in at 6.29%, as Australian banks contend with rising funding costs and inflation risk. According to Canstar, over 90% of lenders have jacked up at least one fixed rate since the Reserve Bank of Australia’s March move, a list that includes Commonwealth Bank, Westpac, National Australia Bank, and ANZ. “Fixed rates are on the move again,” said Canstar’s Sally Tindall. Canstar
Borrowers aren’t catching a break right now. The RBA’s cash rate remains parked at 4.10%, with the next move scheduled for 2.30 p.m. on May 5. The central bank has flagged that the recent surge in fuel prices, driven by Middle East tensions, may push inflation higher.
Westpac posted its standard two-year fixed owner-occupier rate at 6.59% annually. With the package deal and a lower loan-to-value discount, that figure drops to 6.29%. The loan-to-value ratio, or LVR, measures the loan size against the property’s value.
Westpac didn’t just adjust mortgage rates; the bank also hiked deposit rates. Their 24-month online term deposit special now fetches as much as 5.20% per year, with the 12-month version offering up to 5.10%. According to Savings.com.au, the changes to various term deposit rates landed in under a day after the mortgage tweaks.
This works in two directions. Raising deposit rates gives Westpac an edge in attracting savers, yet pricier mortgages squeeze households already wrestling with rising fuel bills and inflation pressures.
Westpac’s Justin Smirk and Luka Belobrajdic, in a Friday note, flagged a scenario where a sharper escalation could see Brent crude hovering around $105 a barrel through the June quarter, before retreating as the year goes on. They pointed to continued tightness in both supply and shipping, saying risks are still skewed higher.
Westpac’s rate change comes just ahead of its half-year results, which are on the calendar for May 5. According to an April 14 ASX release, the bank anticipated the energy supply shock would drive both inflation and rates higher, warning of a “more challenging environment for some customers.” Westpac also pointed to a dip in Treasury and Markets net interest margin, a larger credit impairment charge, and a A$75 million loss linked to the sale of the RAMS mortgage portfolio.
Westpac wrapped up Friday at A$39.01, slipping 0.28% for the day. That followed a 0.71% drop Thursday and a sharper 2.11% slide on Wednesday. Sydney’s market wasn’t open when this story went out.
Westpac NZ has taken Meta to task on scam advertisements in New Zealand. Chief Executive Catherine McGrath pointed out that 64% of scam cases the bank has dealt with so far this year began on social media, a jump from 57% last year. McGrath criticized Meta, calling it “not responding quickly or seriously enough.” 1News
Westpac faces a fork in the road on rates. Should oil prices cool off and the RBA opts to wait, fresh fixed-rate deals could end up looking pricey. On the other hand, if inflation refuses to budge, borrowers take the hit, and the bank might be forced to keep building up provisions for customers on shaky ground.
