Westpac hikes rates on fixed home loans

westpac-bank-branch-australia

Westpac has become the latest lender to lift interest rates on a number of its fixed home loans after announcing a 10 basis point increase yesterday.

The major bank raised the fixed rates on offer to owner occupiers with its Fixed Options Home Loan and Fixed Options Home Loan (Premier Advantage Package) products, with the changes applying across 2-5 year terms.

As a result of the changes, the lowest fixed rates on offer from Westpac for owner occupier borrowers (70-95% LVR) are now as follow:

  • 1-year: 2.09% p.a. (3.59% p.a. comparison rate*) with the Fixed Options (Package)
  • 2-year: 2.09% p.a. (3.50% p.a. comparison rate*) with the Fixed Options (Package)
  • 3-year: 2.18% p.a. (3.42% p.a. comparison rate*) with the Fixed Options (Package)
  • 4-year: 2.69% p.a. (3.51% p.a. comparison rate*) with the Fixed Options (Package)
  • 5-year: 2.99% p.a. (3.58% p.a. comparison rate*) with the Fixed Options (Package)

The latest move comes off the back of two other fixed rate increases in recent months. Westpac lifted rates on its 2 and 3-year fixed terms for owner occupiers in June, and it did the same on its 4 and 5-year fixed rates in August.

On the other hand, the bank made headlines in August after cutting 20bp off the variable rate on its Flexi First Option loan which, at the time, was the lowest variable rate on offer from one of the big four. 

Speaking of the major banks, here’s a look at how Westpac’s Fixed Options (Package, 70-95% LVR) stacks up against comparable fixed rate loans currently on offer from ANZ, Commonwealth Bank and NAB.

Big four fixed packaged home loan rates (1, 3 and 5-year terms) - October 20, 2021

1-year2-year3-year
ANZ - Fixed Rate (Package)2.04% (3.33% comparison rate*)2.04% (3.18%  comparison rate*)2.69% (3.33% comparison rate*)
CBA - Fixed Rate Home Loan (Package)1.99% (4.10% comparison rate*)2.29% (3.87% comparison rate*)2.99% (3.93% comparison rate*)
NAB - Tailored Home Loan (Package)2.09% (3.94% comparison rate*)2.18% (3.70% comparison rate*)2.73% (3.67% comparison rate*)
Westpac - Fixed Options Home Loan (Package)2.09% (3.59% comparison rate*)2.18% (3.42% comparison rate*)2.99% (3.58% comparison rate*)

Westpac is hardly alone in lifting its fixed home loan rates though - plenty of lenders have upped their rates in recent months.

For instance, an analysis of home loans tracked in the Mozo database revealed that, since the start of September, there have been 387 rate increases compared to 122 cuts from 32 different lenders (across 1-5 year terms).

Despite the recent increases, fixed mortgage rates still remain at some of the lowest points they’ve been in years though. In fact, as our fixed rate averages show, shorter term fixed rates (1, 2 and 3 years) are about as low as they’ve been since at least 2015.

RELATED: Athena launches fixed rate home loans

Considering locking in your home loan rate to provide some repayment certainty over the short term? To cast your eyes over a range of options from different mortgage lenders, head on over to our home loan comparison tables, or get comparing right away with some of the great fixed offers in the table below.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans.
Last updated 13 June 2024 Important disclosures and comparison rate warning*
  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    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.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    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.

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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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.