Capped Interest Rate

Introduction

Westpac's capped interest rate loans offer the best of both worlds; a combination of floating and fixed interest rates, which provide flexibility and certainty, but without penalties.

Westpac capped rate loan explained

A capped interest rate sets a ceiling for how high your interest rate can go, but allows your interest rate to reduce in line with Westpac's floating interest rate.

Westpac's capped rate loan is best suited to

• Customers who often have extra money they’d like to put towards their home loan.
• Customers who want to repay their loan faster and keep tighter control over their finances.
• Customers who do not want their cost of borrowings to increase but do want to benefit from any decreases in Westpac's floating interest rate. 

Features and benefits of Westpac's capped rate loan

• You can "break" out of a capped rate loan at no cost, and can pay lumps sums off the principal without cost.
• Redraw facilities are not available during a capped rate period.  So you are not able to make use of any "available buffer" until the capped rate period has ended.  However, you can choose to break out of your capped rate, return the loan to floating, and then redraw the available buffer.
• Currently Westpac offer a 12 month capped rate.