Major Aussie banks raise mortgage rates by 0.25%
- Major Australian lenders match the central bank's cash rate increase for home loan borrowers.
- Variable mortgage rates will jump by 25 basis points starting on Oct. 9.
- Lenders aim to balance mortgage repayment pressures while adjusting savings deposit products.
Westpac (ASX:WBC) joined its major banking rivals in passing through the Reserve Bank of Australia's cash rate increase to variable mortgage customers.
The decision follows Commonwealth Bank (ASX:CBA) moving first, after which Westpac, ANZ (ASX:ANZ), and National Australia Bank (ASX:NAB) confirmed matching 25 basis point increases scheduled for Oct. 9.
"Our priority is supporting customers through this period and helping them stay on top of their finances," said Westpac CEO for Consumer Banking Carolyn McCann.
Westpac stood out as the sole lender among the group to announce immediate saver rate adjustments by raising its Life deposit product bonus rate by 25 basis points.
The lenders are actively monitoring for potential household stress while offering various financial hardship assistance programmes.
Following the announcement, the Westpac share price was unchanged at $35.07.
The rate shifts follow the central bank's broader policy tightening efforts aimed at managing economic conditions across the domestic market.
