Westpac has increased its fixed home loan and term deposit rates on terms of one year or longer, citing a "significant" jump in wholesale rates.
The changes, effective from tomorrow, will see the bank's special fixed mortgage rates rise by between 10 and 30 basis points across terms from one to five years.
The biggest increases were on two-year, three-year and five-year terms, which all rose by 30 basis points. The two-year special rate will move to 5.19%, the three-year to 5.29% and the five-year to 5.59%.
The one-year special rate will increase by 10 basis points to 4.59%, while the 18-month rate rises 16 basis points to 4.85%. The six-month rate remains unchanged at 4.49%.
Standard rates for those with less than 20% equity have also gone up.
Westpac managing director of product, sustainability and marketing Sarah Hearn said "longer-term wholesale rates have increased significantly in recent weeks, driving up funding costs for lenders".
"With today's changes we are absorbing some of those increased costs, and also passing on higher rates to our savings customers," she said.
The bank also lifted term deposit rates on terms of 12 months and longer by between 10 and 30 basis points. The 12-month term deposit rate rises 20 basis points to 3.75%, while the three-year rate jumps 30 basis points to 4.40%.
Hearn said the bank's one-year term deposit rate was now the best among the five biggest banks.
"In an environment of rising interest rates, it's a good time to set financial goals and plan how to achieve them," she said, encouraging both borrowers and savers to get in touch.
Term deposit rates for terms shorter than 12 months were unchanged.
Wholesale interest rates have risen in recent weeks amid global uncertainty linked to the conflict in the Middle East.
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