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
Fixed home loan comparisons on Mozo
-
Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.28
%
p.a.
- Initial monthly repayment
-
$2,899
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,899
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site -
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
5.74
%
p.a.
Fixed 3 years
- Comparison rate
-
6.81
%
p.a.
- Initial monthly repayment
-
$2,915
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
-
1 year - 6.14% p.a. (7.13% p.a.*)
2 years - 5.74% p.a. (6.94% p.a.*)
3 years - 5.74% p.a. (6.81% p.a.*)
4 years - 5.89% p.a. (6.75% p.a.*)
5 years - 5.99% p.a. (6.69% p.a.*)
- Fixed loan revert rate
-
7.24% p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge Fee
-
$160.00
- Package
-
-
- 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
-
$2,915
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
No monthly fee after end of fixed rate term. Lock your fixed rate for 90 days for a fee of $750 per $1m in lending (or part thereof).
- Special Offers
-
$3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read reviews and learn more about ANZ home loans
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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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