Westpac hikes rates on fixed home loans
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-year | 2-year | 3-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.
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
Interested in an ANZ home loan? Lendi specialists can help you refinance your home loan.
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Your selected home loans
* 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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