Westpac has followed the NAB by lifting mortgage interest rates for home owners and property investors.

The variable home loan rate for owner occupiers will increase by 0.03 of a percentage point to 5.32%. For interest only loans the rate will rise by 0.08 of a percentage point to 5.49%.

The variable residential investment property loan rate will increase by 0.23 of a percentage point to 5.79%. The interest only rate will rise by 0.28 of a percentage point to 5.96%.

The rates are effective from March 24.

George Frazis, chief executive of Westpac Consumer Bank, says the decision takes into account a number of economic and regulatory factors.

“Today’s changes are in response to increasing funding costs,” he says.

“Despite home loan interest rates being at historically low levels, both deposits and wholesale funding of mortgages have increased over the last nine months.”

The NAB yesterday announced its variable rate for home loans will rise by 0.07 percentage points to 5.32%, effective March 24.

NAB’s variable rate for residential investment loans will rise by 0.25 percentage points to 5.80%.

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