Home Loans Interest Rates News

Variable home loan interest rate decrease

Tuesday, 20 May 2025 announcement

Following the Reserve Bank of Australia’s (RBA) decision to decrease the official cash rate, BankSA today announced a 0.25% per annum (p.a.) decrease to our variable home loan interest rates, for new and existing home loans.

These variable rate changes will come into effect on Tuesday 3rd June 2025.

Estimate your new repayments

How to check your current rate

Our App – tap your home loan account and tap the Details tab.
Internet Banking – select your home loan account and select Account details.

What this means for your repayments

Principal & Interest variable rate home loans

We’ll send a letter with details of the new minimum monthly repayment amount and when this starts, giving you time to adjust your payments. If you’ve set up a direct debit or automatic payment arrangement for your home loan repayments, your minimum monthly repayment will automatically be adjusted to meet your new minimum monthly repayment amount.

Interest Only variable rate home loans

Your repayment changes each month depending on the interest charged to your loan. If you’ve set up a direct debit or automatic payment arrangement for your home loan repayments, this will continue to be automatically updated to meet your Interest Only repayment.

Fixed interest rate home loans

Repayments aren’t affected by variable interest rate changes during your fixed rate term.

Calculate your new repayments Calculate your new repayments

FAQs

How can I check my rate and repayments?

You can instantly check your current rate, repayments and balance by logging into our App or Internet Banking and selecting your home loan account.

Alternatively, you can request a callback or visit a branch.

How can I estimate changes to my repayments?

What changes can I make to my repayments?

Your BankSA home loan’s been designed to evolve with you, and here are some of the changes you could make:

Repay only the minimum amount – which could free up extra cash in the short term
Repay more than the minimum – over time you could pay your loan off sooner
Change repayment frequency
Switch between P&I and IO

For more on your repayment options, visit manage my home loan.

How do I split or fix my variable rate?

You could change your variable BankSA home loan to a fixed home loan, with no switching fee. Estimate the monthly repayment portions of your variable rate and fixed rate loan using our split loan calculator.

Fixing your variable rate

Logon to our Mobile App or Internet Banking:

Open the drop-down menu (next to your variable rate loan on your dashboard)
Select 'Switch to fixed rate loan'
Choose to fix the entire loan, and select the number of years. Follow the prompts and submit.

Before fixing a current variable home loan, you’ll need to consider what to do with any redraw funds available in your variable home loan account, and any funds in a linked offset account.

Splitting your variable rate

To fix a portion of your variable loan balance please call us on 1300 304 660.

More on fixing your entire variable rate

How can I prepare for future rate changes?

1. Estimate your new repayments

Explore what any future rate changes could look like with our repayment calculator.

2. Build a buffer

If you can afford it, you could make extra repayments into your variable home loan to build a buffer in case rates rise in the future.
If you have an offset account linked to your Standard Variable home loan, you can park your spare money there, and every dollar will work to reduce your home loan interest.
By switching your Principal & Interest repayments^{^^} from monthly to fortnightly or weekly, you will make an extra month’s repayment each year, reducing your total loan term and interest costs.

3. Adjust your loan

You could fine-tune your BankSA home loan – see the FAQs above.

Get a home loan health check and rate review

Your BankSA home loan’s been designed to evolve with you, and we’re here to help fine-tune your loan so you can become mortgage-free sooner. Remember, there’s no fee to switch between our variable loans, or between Interest Only and Principal & Interest repayments. Call through our App to skip the security questions (tap Contact us).

Book a callback Book a callback

Helpful resources

Changes to your repayments

Use our calculator to work out how interest rate changes may impact your loan repayments.

Review and adjust your home loan

Tips to get ahead

Tackle interest rate fluctuations and discover how to own your home earlier.

Terms & conditions

Credit criteria, fees and charges apply. Based on BankSA credit criteria, residential lending is not available for Non-Australian resident borrowers.

^#Advantage Package: Terms & Conditions (PDF 434KB) apply. A $395 annual package fee applies and is payable from an eligible BankSA transaction account. Before deciding to acquire a BankSA transaction account, read the terms & conditions, and consider if the product is right for you.

^*Comparison Rate: The comparison rate is based on a loan of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

^**Available for Owner Occupier and Investment Property Loans with Principal & Interest and Interest only repayments.

⁺LVR stands for the initial loan to value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won’t change during the life of the loan as the LVR changes.

^{^}Basic Home Loan Promotional Principal and Interest Rate: This offer is only available for new Owner Occupier Basic Home Loan applications with Principal and Interest repayments received from 24/11/2023. Discount applies to our Basic Home Loan offer for the life of the loan. Excludes internal refinances and switches within the Westpac Group, which includes Westpac, St.George, Bank of Melbourne, BankSA and RAMS. This offer may be varied or withdrawn at any time. Interest rates subject to change.

Basic Home Loan Promotional Interest Only Rate: This offer is only available for new Owner Occupier Basic Home Loan applications with Interest Only repayments received from 26/10/2020. Discount applies to our Basic Home Loan offer for the life of the loan. Excludes internal refinances and switches within the Westpac Group, which includes Westpac, St.George, Bank of Melbourne, BankSA and RAMS. This offer may be varied or withdrawn at any time. Interest rates subject to change.

Residential Investment Basic Principal and Interest Promotional Rate: This offer is only available for new Residential Investment Basic Home Loan applications with Principal and Interest repayments received from 24/11/2023. Discount applies to our Basic Home Loan offer for the life of the loan. Excludes internal refinances and switches within the Westpac Group, which includes Westpac, St.George, Bank of Melbourne, BankSA and RAMS. This offer may be varied or withdrawn at any time. Interest rates subject to change.

Residential Investment Basic Interest Only Promotional Rate: This offer is only available for new Residential Investment Basic Home Loan applications with Interest Only repayments received from 24/11/2023. Discount applies to our Basic Home Loan offer for the life of the loan. Excludes internal refinances and switches within the Westpac Group, which includes Westpac, St.George, Bank of Melbourne, BankSA and RAMS. This offer may be varied or withdrawn at any time. Interest rates subject to change.

^{^^}Changing repayment amount or frequency: Cannot be performed on an interest-only loan. However, you may make extra repayments. For more details on interest-only home loans.

The interest rates used in the calculator:

are current, as indicated on our home loan interest rate pages;
are BankSA’s standard interest rates and include any package or promotional discounts; and
are subject to change.

The output or result of these calculators:

is subject to the assumptions which are subject to change;
is prepared without knowing your personal financial circumstances. Before you act on the output of the calculators, please consider if it’s right for you. If you need more information, please call 13 13 76. We recommend that you consult your financial adviser before taking out a loan;
does not represent either a quote or pre-qualification for a loan;
may not be taken into account if you apply for a loan with us as we will make our own calculations. When assessing ability to service a loan, BankSA may use an interest rate that is higher than the current interest rate for the loan requested

Interest Rate News