Westpac fixed rate home loans take dive to new lows

Child taking dive

Westpac today slashed its fixed rate home loans by up to 20 basis points, a move that has seen the big bank join lenders with rates that start with '1'. 

Westpac’s 2-year fixed rate for owner occupiers making principal and interest repayments under its Premier Advantage Package dropped by 20 bp to 1.89% (3.46% comparison rate*), while its 3-year rate fell by 11 bp to 1.98% (3.38% comparison rate*). 

These reductions place Westpac’s two packaged fixed rates at the upper end of the Mozo database, with its 2-year offer now the best of the big four banks and the fourth most competitive overall. Meanwhile, its 3-year rate is now tied first with NAB among the big four.

Westpac today also sharpened its standard fixed rates for owner occupiers by 20bp for 2-year terms to 2.09% (4.27% comparison rate*), and by 11bp for 3-year terms to 2.18% (4.10% comparison rate*).

While those standard fixed rate cuts won’t be enough to push Westpac onto the leaderboard, it’s worth noting they do boost the big bank substantially above the 2-year and 3-year averages for owner occupiers in the Mozo database of 2.32% and 2.35%. 

The rate cuts don’t stop there. In line with the growing trend of lenders offering lower rates to borrowers with higher deposits, Westpac shaved an additional 10bp off fixed rate loans with LVRs up to 70%.  

In other words, owner occupiers with a larger deposit of at least 30% can now snag 2-year fixed rates as low as 1.79% (3.37% comparison rate*) on Westpac’s packaged home loan. Or for the standard option, the discount brings Westpac’s 2-year fixed rate down to 1.99% (4.17% comparison rate*). 

The rest of the Westpac Group also followed suit today, with St.George, Bank of Melbourne and BankSA experiencing similar fixed rate cuts of up to 20bp across its 2-year and 3-year offers.

To lock or not to lock my home loan? 

Since the Reserve Bank rate cut in November, home loans that start with ‘1’ have become the new norm with a vast majority of these offers belonging to the fixed rates cohort. So it’s no surprise why fixed rate loans have grown increasingly attractive to borrowers wanting to secure a top deal. 

But are there any catches to locking in your rate? 

While there are big pluses to fixing your loan such as consistent repayments, you will have to weigh up a few potential cons. For instance, if you intend to refinance again in the next few years, you may incur break costs for switching loans before your fixed period is over. There’s also the revert rate to watch out for, which could be twice as high as your current rate, but the good news is you can either re-fix or refinance at the end of your term to avoid being stung by the revert rate. 

If you’re interested in locking in a home loan, why not start by comparing the fixed rate deals below. Or head on over Mozo’s fixed rate comparison hub for even more competitive offers.

Compare fixed rate home loans - last updated 3 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    5.91% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.13% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.56% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

    Compare
    Details
  • Fixed Rate Loan with Orange Advantage

    Orange Advantage, Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 2 years
    6.16% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees. Free additional repayments (less than $10,000 p.a.). Valid for loans of $50,000 up to $2,000,000.

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 3 years
    6.19% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Compare
    Details

* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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