ANZ and Westpac increase fixed rates on home loans, some by up to 60 bp

A blue and pink cartoon house with open stairs and stacks of coins at different levels.

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

TermChangeCurrent Rate
1-year
-45 bp
3.09% p.a. (4.58% p.a. comparison rate*)
2-year+20 bp3.99% p.a. (4.61% p.a. comparison rate*)
3-year+15 bp4.49% p.a. (4.70% p.a. comparison rate*)
4-year+10 bp4.69% p.a. (4.76% p.a. comparison rate*)
5-year+30 bp4.89% 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

TermChangeCurrent Rate
1-year
+30 bp
3.34% p.a. (3.21% p.a. comparison rate*)
2-year+60 bp4.04% p.a. (3.34% p.a. comparison rate*)
3-year+50 bp4.44% p.a. (3.37% p.a. comparison rate*)
4-year+40 bp4.74% p.a. (3.59% p.a. comparison rate*)
5-year+40 bp4.94% 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

BankLowest 2-year rateLowest 5-year rate
NAB
3.59% p.a. (4.48% p.a. comparison rate*)
4.59% p.a. (4.68% p.a. comparison rate*)
CommBank3.94% p.a. (4.59% p.a. comparison rate*)4.64% p.a. (4.74% p.a. comparison rate*)
Westpac3.99% p.a. (4.61% p.a. comparison rate*)4.89% p.a. (4.85% p.a. comparison rate*)
ANZ4.04% 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.

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Fixed rate home loan repayment calculator

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Compare and save on fixed rate home loans - last updated 13 August 2022

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    interest rate
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    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
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    Initial monthly repayment
    4.99% p.a.
    fixed 1 year
    3.63% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2022.

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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, loan amount and term entered. 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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