Westpac is increasing home loan rates.
Westpac is increasing a range of its home loan interest rates by up to 50 basis points.
It is the second bank to move after the Reserve Bank increased the official cash rate by 75 basis points last week.
Westpac said its special rates would all rise by 50bps, except for the four-year rate, which lifts by 40bps.
That takes the special rates to 6.49% for a one-year rate through to 6.79% for five years.
Standard rates range from 7.09% to 7.39%.
On Tuesday, ANZ said its home loan fixed rates would increase by 55bps, except for four- and five-year terms, which increase by 35bps.
That means fixed home loans will range from 6.54% on a one-year special through to 7.64% on a five-year standard rate.
“We understand the cost of living and rising interest rates are having an impact and we’re contacting our home loan customers to ensure they are aware of the options they have to manage repayments in a rising interest rate environment,” ANZ managing director for personal banking Ben Kelleher said.
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Gareth Kiernan, Infometrics chief forecaster, said it was likely other banks would follow suit.
He said he expected one-year rates to peak about 7.25% to 7.5%.
Banks were unlikely to compete hard for market share at the moment while house prices were falling, he said.