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 14 August 2022

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  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

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  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

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  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

    Details
  • PAYG Investor Loan

    Investment, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.64% p.a. variable
    3.68% p.a.

    Low variable rate. Ideal for investors buying or refinancing. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.74% p.a.variable for 12 months and then 4.23% p.a. variable
    4.22% p.a.

    Already includes July RBA rate increase. No monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.

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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, loan amount and term entered. 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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