It follows similar moves from ANZ and ASB.
The Government is demanding "immediate and concerted" action from banks.
The bank's one-year home loan rate increased 7.19 percent to 7.25 percent, for borrowers with at least 20 percent equity.
Five ASB term deposits have increased.
Westpac is citing a rise in wholesale rates as the cause for its increase.
It comes after an 18-month low.
One employee said the bank's offer of a 7 percent pay increase is "insulting".
"Banks should be making big profits because they're really big entities."
"We think it is a very competitive market," the Bankers' Association says.