Westpac cuts home loan, deposit interest rate by 0.25%

Westpac Life and Westpac eSaver rates are affected.

Westpac will cut interest rates for home loan and deposit customers by 0.25% per annum.

This follows the Reserve Bank of Australia’s decision to decrease the cash rate by 0.25% to 4.1%.

For home loan customers, Westpac will decrease the home loan variable interest rates by 0.25% p.a. for new and existing customers, effective 4 March 2025.

For deposit customers, the Westpac Life total variable rate with bonus interest will decrease by 0.25% p.a. to 4.75% p.a., effective 28 February.

Meanwhile, the Westpac eSaver total variable rate with a 5-month introductory rate will decrease by 0.25% p.a. to 4.75% p.a. for new customers applying online, effective 28 February.

Westpac chief executive for the consumer business, Jason Yetton, said that the decrease in interest rates is a “welcome news” for their mortgage customers.

“By reducing the standard variable home loan rate by 0.25 per cent per annum, customers will save an extra $90 per month, or $1,080 per year, based on a $500,000 home loan with principal and interest repayments,” Yetton said in a statement announcing the lower interest rates.