Westpac hits interest only borrowers with latest rate hikes
Article by Roisin Kelly-Goldsmith
Westpac has raised the fixed rates attached to nearly all of its interest only packaged loans, in a move that will affect new investor and owner occupier customers.
The major bank lifted fixed rates across nine mortgages by up to 30 basis points, which means that interest only rates for owner occupiers now sit on par with the rates available to investors.
In a positive twist for borrowers however, Westpac also slashed rates across a range of two and four year terms by as much as 27bp. Homeowners looking to take advantage of the big four bank’s recent interest rate drop with its one year packaged loan will be glad to hear that the 3.99% rate has been left untouched.
Westpac’s sister banks St.George, BankSA and Bank of Melbourne also joined the rate hike party with increases of up to 25 basis points. A small number of four year fixed rates were slashed however, with 25bp being the most generous cut among them.
This news comes after CommBank slugged investors across 14 of its mortgage products last Friday, with the most brutal of the hikes at 0.50 basis points.
While none of these lenders have commented on the increases, their moves form part of a bigger trend that the team at Mozo has been reporting on for months now.
Only last month borrowers were hit with a flood of variable rate rises, despite the RBA continuing to keep the cash rate on hold at 1.50%.
This month rates have climbed even higher with 28 lenders announcing increases, according to the latest Mozo data.