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

By Tom Watson · · 2 min read
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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.

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Last updated 20 September 2024 Important disclosures and comparison rate warning*

Refinance home loan comparisons on Mozo

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    • Owner Occupier
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    Interest rate
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    Comparison rate
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    • Owner Occupier
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    6.11 % p.a.
    Initial monthly repayment
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  • 3 Year Special Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,899
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    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

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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.

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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.

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