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Interest rate changes

Interest rates have been increasing. We’re here to help you understand what this could mean for you and give you some resources to help you manage the rate rises.

Please note any advice given here is general in nature and is not based on any consideration of your objectives, financial situation or needs.

Page last updated on 9 November 2023.

Latest update

Home loan rates

The latest change to our home loan rates will take effect on 17 November 2023, when our Standard Variable Rate (SVR) for home loans will increase by 0.25% p.a. for new and existing customers. Check out the table below for the new SVR.

Savings rate

We’re also increasing the interest rates for select savings products, including by 0.25% to our Hero Saver rate* (new rate 4.60%), Easy Saver Introductory rate for balances up to $250,000 (new Easy Saver Introductory rate: 5.10%), and Smart eSaver Variable Smart rate* for balances up to $500,000 (new rate 2.45%).

All savings and deposit changes are effective 17 November 2023.

All changes will be reflected on our savings account page from their effective date.

*Rate includes the standard variable rate and variable bonus rate.

Standard Variable Rate

The Standard Variable Rates below, also referred to as Reference Rates, are benchmark rates used to set home loan interest rates. Each variable home loan product is linked to one of our reference rates. The reference rate for your home loan product – after we've applied any relevant discounts – determines your variable interest rate.
   Current rate
(% p.a.) 		New rate
(% p.a.) 		Change
(% p.a.)
Owner Occupiers
(Also known as ‘Standard Variable Reference Rate’) 		8.75 9.00 0.25
Owner Occupiers – Interest only
(Also known as ‘Standard Variable Interest Only Reference Rate’) 		9.10 9.35 0.25
Investors
(Also known as ‘Investor Variable Reference Rate’) 		9.40 9.65 0.25
Investors – Interest only
(Also known as ‘Investor Variable Interest Only Reference Rate’) 		9.53 9.78 0.25
  
Current rate
(% p.a.)
New rate
(% p.a.)
Change
(% p.a.)
Owner Occupiers
(Also known as ‘Standard Variable Reference Rate’)
8.75
9.00
0.25
Owner Occupiers – Interest only
(Also known as ‘Standard Variable Interest Only Reference Rate’)
9.10
9.35
0.25
Investors
(Also known as ‘Investor Variable Reference Rate’)
9.40
9.65
0.25
Investors – Interest only
(Also known as ‘Investor Variable Interest Only Reference Rate’)
9.53
9.78
0.25

Please note: The above reference rates may not apply to your particular repayment type. The reference rate and discount margin applicable to an individual loan is specified in the loan contract. Please review your loan contract to identify which reference rate applies to you or get in touch with us via the Bankwest App or call on 13 17 19.

Why rates are increasing

Financial institutions like Bankwest have multiple sources of funding because deposits from Australian households aren't enough to cover all our lending requirements.

To have enough capital to give our customers loans, we get funding via bonds and other debt securities through large institutional banks – like the Reserve Bank of Australia (RBA).

The RBA has provided an explainer of this funding mechanism on its website.

When the RBA decides to increase Australia's cash rate, as it has several times recently, our costs of borrowing funds goes up, and we may decide to increase our rates to stay financially viable.

The RBA cash rate is one factor that influences our interest rates. We may also choose to adjust our products independent of the RBA’s movements, based on our need to remain a strong and stable financial institution, hold the capital required of us by Government, deliver value to shareholders, and stay competitive in the market.

Savings interest rates​

RBA cash rate changes also affect savings interest rates.

Increases to Australia’s cash rate means our costs of borrowing funds from other sources goes up, which, in turn, increases the value of those funds we hold from savings customers.

We increase the interest paid to savings customers as a reflection of that increase in value.

What this means for your home loan

Principal and Interest home loans​

If this affects your home loan, the adjustment does not take effect immediately, giving you time to plan for the change to your financial situation.

If you're impacted by this change, your minimum monthly repayment amount will also change.

Interest only home loans​

If this rise affects your home loan, the rate change comes into effect on 17 November 2023 and the next interest only repayment following that date will be calculated daily at the applicable interest rate.

Affected customers will be sent an Account Positioning Statement containing details of how their home loan repayments will be affected.

Monthly repayment increase

Here's an example of how much monthly repayments might increase by after this latest increase.
Loan size (+0.25%)
$300,000 $50
$400,000 $67
$500,000 $84
$600,000 $100
$700,000 $117
$800,000 $134
$900,000 $150
Loan size
(+0.25%)
$300,000
$50
$400,000
$67
$500,000
$84
$600,000
$100
$700,000
$117
$800,000
$134
$900,000
$150

Please note: Increased principal and interest monthly repayment amounts are based on an owner-occupier with a 30-year home loan and a 7.05% interest rate per annum (including the latest increase).

Prepare for future home loan rate rises​

Review your home loan​

  • Consider switching from a variable rate to a fixed rate to get more certainty around your home loan rate in the coming months and years. Chat to a Home Lending Specialist or your broker about whether this option is suitable for you.
  • If you have a principal and interest loan, consider increasing your repayment amount and frequency to help decrease your loan amount faster and reduce the overall interest payable. Check out our home loan repayment calculator to see how this could help.

Review your budget and spending

  • Review your essential and non-essential expenses to determine if funds need to be reallocated.
  • Set a budget to calculate how much you could afford to spend on your monthly repayments. If this amount doesn't give you a buffer for future increases, consider cutting back on non-essential spending. Use our budgeting calculator to help.
  • If you have credit card debts and personal loans, debt consolidation could help you save on interest and fees.

Need some extra help?

Financial hardship assistance

​We appreciate rising interest rates might cause difficulties for some of our customers, and we're here to support you during this time.

If you're experiencing financial challenges due to this rate change or any other circumstances, get in touch with us so we can understand your individual situation and work with you to identify how best to support you.

Find out how we can help

Home management support​

We think these challenging economic conditions may be here to stay for a while, so we're encouraging all customers to make sure they're in the best financial position possible.

The increase in cost of living and interest rates can feel stressful and isolating, even though so many Australians are in the same boat. Check out our range of tools, tips and guides to help you manage your home loan under pressure.

Cost of living support

Want to know more?

We believe challenging economic conditions may be here to stay for a while, so we encourage all customers to ensure they are in the best possible financial position.​

The Bankwest website provides some general strategies that might support customers.​

Fixed interest rates are priced off the Wholesale Cost of Funds, which is the cost of borrowing money from the International Money Market.

​We review our fixed interest rates regularly and might make changes based on a range of indicators, including the potential for future RBA rate changes and changes in the cost of funds.​

Rate decisions can also be influenced by competitor activity.​

Premiums charged for locking in the money for a period of time also affect the cost of fixed rate products.​

If you have a periodical payment set up for the monthly minimum repayment, you don’t need to do anything – we’ll automatically adjust the payment.​

You'll need to manually update your repayment amount if:

  • You have a scheduled payment set up to pay a different amount
  • ​You're making payments from elsewhere, like another bank​
  • You manually make payments each month.​
  • Your periodical payment is set at a fixed amount, rather than the default minimum monthly repayment amount.

Your new minimum monthly repayment amount will be outlined in your Account Position Statement, which you’ll receive in the post soon.​

Whenever the RBA changes interest rates, we aim to announce and apply our new rates as soon as possible. We need to make system changes to the interest rates for multiple products, which then needs to be communicated to customers across Australia via the issuing of Account Position Statement letters.​

​It’s always a great idea to get in touch with us for a banking health check, particularly if you’re unsure about your current products or financial situation.​

We can discuss what savings products might work best for your individual circumstances and support you in making the most of your banking accounts.