ANZ and Westpac increase fixed rates on home loans, some by up to 60 bp
ANZ and Westpac have joined CBA in announcing changes across their fixed rate home loans last week, with hikes nearly across the board for both investment and owner occupier products. These announcements now mean three out of the Big Four Australian banks have joined the April rate-hike scramble.
While variable interest rates on home loans continue to fall, rising fixed rates reflect growing anticipation over a potential rise in the official RBA cash rate as early as June.
Westpac made the only rate cut, lowering 1-year interest fixed rates for both investors and owner-occupiers making P&I repayments, while lifting other interest rates.
Meanwhile, ANZ made universal increases across its owner-occupier P&I fixed rates, up by as much as 60 basis points for 2-year options.
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The table below shows the new fixed rates on the Westpac basic home loan for owner-occupiers making P&I repayments:
Westpac Fixed Options Home Loan (P&I) - 14 April 2022
| Term | Change | Current Rate |
| 1-year | -45 bp | 3.09% p.a. (4.58% p.a. comparison rate*) |
| 2-year | +20 bp | 3.99% p.a. (4.61% p.a. comparison rate*) |
| 3-year | +15 bp | 4.49% p.a. (4.70% p.a. comparison rate*) |
| 4-year | +10 bp | 4.69% p.a. (4.76% p.a. comparison rate*) |
| 5-year | +30 bp | 4.89% p.a. (4.85% p.a. comparison rate*) |
These new rates now represent Westpac’s lowest fixed rate home loan option.
Meanwhile, ANZ made the following changes to its basic home loan for owner-occupiers making P&I repayments (<90% LVR):
ANZ Fixed Rate OO Home Loan (P&I) - 14 April 2022
| Term | Change | Current Rate |
| 1-year | +30 bp | 3.34% p.a. (3.21% p.a. comparison rate*) |
| 2-year | +60 bp | 4.04% p.a. (3.34% p.a. comparison rate*) |
| 3-year | +50 bp | 4.44% p.a. (3.37% p.a. comparison rate*) |
| 4-year | +40 bp | 4.74% p.a. (3.59% p.a. comparison rate*) |
| 5-year | +40 bp | 4.94% p.a. (3.80% p.a. comparison rate*) |
Comparing their lowest rates with the other Big Four, we can get an idea about how this week’s changes reshuffle the banks.
Big Four fixed rate home loans comparison (OO, P&I) - 14 April 2022
| Bank | Lowest 2-year rate | Lowest 5-year rate |
| NAB | 3.59% p.a. (4.48% p.a. comparison rate*) | 4.59% p.a. (4.68% p.a. comparison rate*) |
| CommBank | 3.94% p.a. (4.59% p.a. comparison rate*) | 4.64% p.a. (4.74% p.a. comparison rate*) |
| Westpac | 3.99% p.a. (4.61% p.a. comparison rate*) | 4.89% p.a. (4.85% p.a. comparison rate*) |
| ANZ | 4.04% p.a. (3.34% p.a. comparison rate*) | 4.94% p.a. (3.80% p.a. comparison rate*) |
The RBA abandoning its patient stance is one of the likely culprits behind this latest round of hikes. Rising fixed interest rates tend to also reflect a bank’s rising costs due to inflation, so lenders have been scrambling to compensate as the economy readjusts back to the pre-pandemic status quo.
According to Westpac’s current forecasts, the official cash rate is set to start increasing as early as June, with a peak of 2% in 2023.
The increasing size and frequency of these latest interest rate hikes could leave Australians hoping to enter the property market with some tough decisions to make. Interest rates may therefore be one of the key housing trends to watch out for in 2022.
If you’re in the market for a home loan, have a go using our fixed rate comparison tool to help find competitive rates.
Loan details
Repayment change if rates go up
Fixed rate home loan repayment calculator
Home loan comparisons on Mozo
-
Optimum Fixed Rate Home Loan
- Owner Occupier
- Principal & Interest
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.34
%
p.a.
- Initial monthly repayment
-
$2,899
Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.
- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.34
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
- Extra repayments
-
yes - free up to $20,000 p.a. during fixed rate term
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- $2,500,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this South West Slopes Bank Optimum Fixed Rate Home Loan
-
Flex Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR <60%
Go to site- Interest rate
-
5.99
%
p.a.
Fixed 3 years
- Comparison rate
-
6.34
%
p.a.
- Initial monthly repayment
-
$2,995
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- Interest rate
-
5.99
%
p.a.
Fixed 3 years
- Comparison rate
-
6.34
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Flex Home Loan
-
Basic Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR<70%
Go to site- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,079
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.20
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Offset Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR <70%
Go to site- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.42
%
p.a.
- Initial monthly repayment
-
$3,079
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.42
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Initial monthly repayment
-
$3,174
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge fee
-
$160.00
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $3,000 cashback for eligible First Home Buyers, $2,000 cashback when you refinance loans of $250k+, apply from 1 Dec 2022, settle within 180 days.
Read our Mozo Review to learn more about this ANZ Fixed Rate
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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