Westpac Home Loan Review

Published: June 27, 2019

If you’ve recently found your ideal home or investment property, you’re likely searching for a home loan suited to your requirements and budget. Perhaps you’ve heard that Westpac has recently reduced their interest rates, and you’re wondering whether they’re a good option.

Westpac offers a wide range of home loan options to suit your borrowing needs, including principal + interest and interest only home loans with a variable, fixed or line of credit interest rate. Alternatively, Westpac's Premier Advantage package might be worth considering.

Take note: ComparingExpert and consultants are not mortgage brokers. The information provided in this article is to help you make an informed decision. Please contact the home loan provider or financial institution for advice and guidance.

Westpac mortgage options

Westpac offers a variety of home loan rates, including:


Variable home loan rates

Available to both owner occupiers and investors. Interest rates rise and fall with market interest rates. Their Flexi First Option is a cheaper, basic home loan that gives you the option to include and pay for additional features. The Rocket Repay Home Loan is a variable home loan with an interest offset facility, which could help reduce the interest charged on your home loan.


Fixed home loan rates

With Westpac fixed home loan rates, you can lock-in your interest rates for up to 5 years. Fixed home loans can provide you with more certainty during your chosen fixed term - 1, 2, 3, 4 or 5-years.


Line of credit home loan option

The company's line of credit loan is called Equity Access Loan, which provides flexible access to loan funds for investment and wealth creation purposes.


Westpac premier advantage package

If you decide to package your home loan and bank account with Westpac, you can benefit from the Westpac Premier Advantage Package. For an annual fee of $395, you gain access to interest rate discounts and fee reductions on:

  • Rocket Repay Home Loan
  • Premium Option Home Loan
  • Variable Rate Investment Home Loan
  • Rocket Investment Home Loan
  • Equity Access Loan
  • Fixed Options Home Loan
  • Fixed Rate Investment Property Loan

What are Westpac home loan rates?

The interest rate you can expect from Westpac depends on the home loan option you choose: variable or fixed for owner occupiers or investors. However, when packaging your home loan with the Premier Advantage Package, you might be entitled to additional discounts.

You might want to compare Westpac home loan interest rates with other big home loan providers in Australia, before making a decision.

Westpac mortgage rates: Variable and Fixed

Westpac Owner Occupied Home Loans (Principal and Interest)

Westpac Variable Rate Interest Rate Comparison rate
Flexi First Option Home Loan 4.53% p.a. 4.58% p.a.
Rocket Repay Home Loan 5.18% p.a. 5.32% p.a.
Westpac Fixed Rate Interest Rate Comparison rate
1 Year Term 4.29% p.a. 5.23% p.a.
2 Year Term 3.99% p.a. 5.1% p.a.
3 Year Term 3.99% p.a. 5.0% p.a.
4 Year Term 4.29% p.a. 5.01% p.a.
5 Year Term 4.29% p.a. 4.95% p.a.

Westpac Investment Home Loans (Principal and Interest)

Westpac Variable Rate Interest Rate Comparison rate
Flexi First Option Home Loan 5.08% p.a. 5.13% p.a.
Rocket Repay Home Loan 5.74% p.a. 5.87% p.a.
Westpac Fixed Rate Interest Rate Comparison rate
1 Year Term 4.69% p.a. 5.76% p.a.
2 Year Term 4.09% p.a. 5.55% p.a.
3 Year Term 4.19% p.a. 5.44% p.a.
4 Year Term 4.99% p.a. 5.6% p.a.
5 Year Term 4.59% p.a. 5.38% p.a.
Source: Westpac.com.au (June 2019).

Take note: The comparison rate is for a home loan of $150,000 over a 25-year term.

Home loan features from Westpac

  • Free extra repayments on your Westpac variable home loan to help reduce the interest you pay.
  • Offset account: Certain home loans from Westpac will allow the money you have in your transaction account to offset your mortgage account. This means your balance gets reduced, thus reducing the interest payable.
  • Parental Leave: If you’ve held your loan for over 12 months, you might qualify for an up to 50% reduction in your repayments while on paternity or maternity leave.
  • Redraw facility: You can make as many additional payments as you like with a variable loan and then redraw from these extra repayments should you require it.
  • Repayment frequency: Choose to pay your mortgage in a way that suits your cash flow — monthly, bi-monthly, fortnightly or weekly.
  • Repayment holiday: Take a break from repayments or reduce payments for a set period.
  • Top-up your home loan: With a variable mortgage, you can apply to increase your existing home loan to pay for things like renovations or home improvements.

How much deposit do you need for a Westpac home loan?

You generally need at least 5% of the property purchase price. If you need to borrow more than 80%, you'll typically have to pay a Lenders Mortgage Insurance (LMI). Your LMI will usually be included in the upfront costs or your loan repayment.

If you have more than 20% deposit saved, then you might be able to put down a deposit without mortgage insurance. Use the Westpac deposit calculator to help you.

Should you be unable to provide any deposit, there might be other options available to you, such as:

Parental Guarantee: If specific criteria are met, your parent's can use the equity in their home to help you buy your home.

Deposit Protect Bond: Should you require a cash deposit and your funds are currently tied up in other assets you may qualify for a deposit bond up to 10% of the purchase price of your property.

First Home Buyers Grant: If you are a Westpac first time home buyer, you could receive exclusive home loan interest rates and discounts. However, this benefit differs between states and territories.

Example of Westpac Home Loans deposit amounts

Property Purchase Price Minimum Deposit
20% 5%
Without LMI With LMI required
$900,000 $180,000 $45,000
$800,000 $160,000 $40,000
$700,000 $140,000 $30,000
Source: Westpac.com.au (June 2019).

How to qualify for a Westpac mortgage

You can find out if you are eligible for a mortgage from Westpac by contacting them directly or requesting a call back on their website. If you are an existing Westpac customer, you can log into your account and select the 'apply for a home’ link in the right-hand navigation. You can also call a home loan specialist or visit your closest Westpac branch.

When applying for a home loan, make sure you have the following information ready:

  • Your personal information and contact details,
  • How much you would like to borrow,
  • Specify the loan type you're interested in and the purpose: To live in or use as an investment,
  • All the details concerning the property you are looking to purchase, and
  • Your debts and expenses, for example, credit cards, other loans etc.

Westpac home loan application checklist

When applying for a home loan, you generally need the following documents and information:

  • Proof of identity,
  • Proof of residential address,
  • Date of birth (provide proof via your driver's licence or Medicare card),
  • All your monthly expenses, i.e. loan repayments, credit card limits and ATO assessment notices,
  • A record of all your assets and liabilities,
  • Latest superannuation statement,
  • Account statements showing proof of savings and other ongoing expenditures, and
  • A full copy of the Contract of Sale for the property you plan to purchase with all annexures.

About Westpac

Westpac has been around for over 200 years. Today, it is one of the four largest banks in Australia and one of the largest banks in New Zealand.

Westpac offers a variety of banking products and services for individuals, businesses and corporates.

In 2008 Westpac merged with St George Bank, which later became a division within the Westpac Banking Group.

Frequently asked questions and answers

How to qualify for a Westpac home loan cash back offer?

Westpac offers a $2,000 rebate if you switch your home loan to their Premier Advantage Package. To qualify your loan amount needs to be at least $250,000. Take note: A $395 annual package fee applies.

Are redraw facilities offered on Westpac home loans?

Yes. Specific Westpac home loan options like the Westpac Rocket Repay Home Loan and the Variable Investor Home Loan with Offset offer the benefit of a redraw facility.

What are the payment options for Westpac home loans?

You can set-up a direct debit with Westpac and choose to pay fortnightly, weekly or monthly. You can also select the minimum amount you’d like to repay or choose an option that helps you get ahead, for example, paying the minimum repayment plus a fixed extra amount.

How to refinance my home loan with Westpac?

Westpac offers a straightforward refinancing process, which includes:

  • Choosing the right Westpac home loan. Try to find one that is similar to your current home loan, but still suits your financial and family requirements.
  • Applying for a home loan and a Westpac home loan expert will help you fill in all the necessary documentation.
  • Receiving a Letter of Offer when all criteria on your application have been met and approved.
  • Titles will be exchanged, and Westpac will register a mortgage on your property, once you have signed and submitted your Letter of Offer.
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