Westpac raises fixed home loan rates for third consecutive month

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Westpac has become the latest in a string of mortgage lenders to hike interest rates on a number of its fixed home loans - the third time the major bank has lifted fixed rates in 2022.

Coming into effect this morning, interest rates on the bank’s Fixed Options Home Loan and Fixed Options Home Loan (Premier Advantage Package) are now between 15 and 30 basis points higher for new owner occupier and investor customers.

That means that the lowest advertised fixed home loan rates currently available for an owner occupier (80% LVR) with Westpac are as follows:

  • 1-year: 2.79% p.a. (3.66% p.a. comparison rate*) with the Fixed Options (Package)
  • 2-year: 2.99% p.a. (3.66% p.a. comparison rate*) with the Fixed Options (Package)
  • 3-year: 3.54% p.a. (3.77% p.a. comparison rate*) with the Fixed Options (Package)
  • 4-year: 3.79% p.a. (3.87% p.a. comparison rate*) with the Fixed Options (Package)
  • 5-year: 4.09% p.a. (4.03% p.a. comparison rate*) with the Fixed Options (Package)

Westpac are hardly alone in ramping up rates on fixed home loans though. Of the 90 lenders currently being tracked in the Mozo database, 62 have increased some or all of their fixed rates since the start of February - several of which have made multiple hikes.

And fellow major banks ANZ, Commonwealth Bank and NAB are among that group of lenders who have raised rates - the former two having done so twice in the last month.

Unsurprisingly, the impact of these recent changes on the average fixed mortgage rates in the Mozo database has been significant - particularly on the longer fixed terms (3, 4 and 5-years).

 

In fact, as the graph above shows, fixed rates on those longer terms are now roughly the same as they were two years ago. And with no indication that the current upswing is losing steam - at least, for now - the question remains: how high will fixed rates go?

RELATED: Low rate home loans round-up: March 2022

Curious to see how Westpac’s fixed rates stack up to other offers on the market?

To compare fixed and even variable rates on a range of mortgage options head on over to Mozo’s dedicated home loan comparison tables, or get started straight away by checking out the great deals wrapped up in the table below.

Compare fixed rate home loans - last updated 18 May 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Own Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    2.99% p.a.
    fixed 1 year
    2.50% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    3.59% p.a.
    fixed 1 year
    2.54% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Details
  • Fixed Rate Home Loan

    Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.07% p.a.
    fixed 1 year
    3.05% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.

    Details
  • Mozo Expert Choice Badge
    Discount Great Rate Home Loan

    LVR<90%, over $150k

    interest rate
    comparison rate
    Initial monthly repayment
    3.09% p.a.
    fixed 1 year
    2.28% p.a.

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2022.

    Details
  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.99% p.a.
    fixed 1 year
    2.53% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2021.

    Details
  • Fixed Rate Loan

    Owner Occupier, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    3.39% p.a.
    fixed 1 year
    2.88% p.a.

    Fixed rate home loan with unlimited extra repayments without penalty and unlimited redraw facility.

    Details

* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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