AusBN - Westpac has followed National Australia Bank (NAB) in raising its variable mortgage rates for owner-occupiers and investors.
The bank has increased its owner-occupier rate by 0.03% to 5.32% for those making principal and interest repayments, meanwhile interest-only rates increased by 0.08% to 5.49%.
Small business variable rates were also raised by 0.08%, as Westpac imitated NAB’s earlier decision to hike up its business rates.
NAB lifted its rates following the move by the US Federal Reserve to increase its cash rate by 0.25%, which has caused a knock-on effect as funding costs rise for Australia’s big banks.
Westpac consumer bank chief executive George Frazis said: “Today's changes are in response to increasing funding costs.
“Despite home loan interest rates being at historically low levels, both deposits and wholesale funding of mortgages have increased over the last nine months.”