Westpac raises fixed home loan rates for third consecutive month

By Tom Watson · · 2 min read
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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 9 December 2023

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

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.40% p.a.
    fixed 4 years
    6.24% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Go to site
    Details
  • Basic Home Loan

    Fixed, Investment, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.79% p.a.
    fixed 3 years
    6.64% p.a.

    Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.

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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

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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