Westpac raises fixed home loan rates for second time in three weeks

westpac-signs-outside-branch

The deluge of hikes to fixed interest home loan rates show no signs of letting up, with major bank Westpac adding to the swell this morning by increasing rates by 10 to 30 basis points on a number of loans.

This is the second time Westpac has lifted its fixed rates already this year, having made similar increases in late January, and it’s now the fifth increase made by the bank since the start of November.

The latest changes impact the rates available to both new owner occupier and investor borrowers on two of Westpac’s loans: the Fixed Options Home Loan and the Fixed Options Home Loan (Premier Advantage Package).

That means that the lowest advertised fixed rates from Westpac that are available to owner-occupier borrowers (80% LVR) are now:

  • 1-year: 2.59% p.a. (3.64% p.a. comparison rate*) with the Fixed Options (Package)
  • 2-year: 2.84% p.a. (3.62% p.a. comparison rate*) with the Fixed Options (Package)
  • 3-year: 3.24% p.a. (3.69% p.a. comparison rate*) with the Fixed Options (Package)
  • 4-year: 3.64% p.a. (3.82% p.a. comparison rate*) with the Fixed Options (Package)
  • 5-year: 3.89% p.a. (3.94% p.a. comparison rate*) with the Fixed Options (Package)

The changes aren’t limited to Westpac though, as Westpac Group lenders Bank of Melbourne, BankSA and St.George made similar rate increases to their respective mortgages this morning.

Westpac’s fellow major banks have also been involved in the fixed rate hike action, with ANZ lifting rates on Tuesday after CBA and NAB made moves of their own last week.

As a result, here’s a snapshot of the lowest advertised fixed rates available to owner occupiers (with an 80% LVR) from the four major banks across one, three and five-year terms:

Lowest big four fixed home loan rates - February 10, 2022

1-year3-year5-year
ANZ2.49% p.a. (3.37% p.a. comparison rate*)3.39% p.a. (3.52% p.a. comparison rate*)3.99% p.a. (3.82% p.a. comparison rate*)
CBA2.59% p.a. (4.15% p.a. comparison rate*)3.24% p.a. (4.11% p.a. comparison rate*)3.79% p.a. (4.24% p.a. comparison rate*)
NAB2.64% p.a. (3.94% p.a. comparison rate*)3.34% p.a. (3.96% p.a. comparison rate*)3.69% p.a. (4.06% p.a. comparison rate*)
Westpac2.59% p.a. (3.64% p.a. comparison rate*)3.24% p.a. (3.69% p.a. comparison rate*)3.89% p.a. (3.94% p.a. comparison rate*)

The major banks have hardly been alone in raising fixed rates though. Since the end of 2021 our fixed rate averages, which are pulled from loans being tracked in the Mozo database, have all skyrocketed - particularly for the longer three, four and five-year terms.

RELATED: Home loan rate check: How do ANZ, CBA, NAB and Westpac compare?

Curious to see how competitive your own home loan rate is at present?

Compare it to a range of different loans from Australian lenders using our handy home loan comparison tables, or get comparing straight away by casting your eyes over some of the great offers in the table below.

Compare home loans - February 2022 - last updated 31 May 2024

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  • Discount Variable Home Loan

    Owner Occupier, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.01% p.a.

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  • Variable Home Loan 90

    Principal and Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% p.a.

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

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  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

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  • The Better Home Loan Special Offer

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.14% p.a.

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

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  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    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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  • Elevate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.20% p.a.

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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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

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