Westpac hikes housing base rate

Westpac is the first bank to move in the wake of yesterday's 25 bp rate hike by the Reserve Bank, which took the Official Cash Rate from 6.00% to 6.25%.

Westpac said its new rate will become effective from September 13 for new customers and from October 4 for existing customers. The change adds $25.25 to a monthly payment on a $150,000 mortgage on a 25-year term.

The bank said in a statement the increase was due to a lift in the 90-day bill rate, which sets Westpac's cost of funds.

"When Westpac last lifted its HBR on 29 July the 90-day bank bill rate stood at 6.33 percent and it now stands at 6.61 percent," the bank's statement said.

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