Westpac raises fixed home loan rates by up to 80 bp
Today, Westpac announced a series of hikes to its fixed rate Premier Advantage home loans, making it the first Big Four bank to lift fixed interests this month. The changes will affect both owner-occupier and investment products and vary between 80 basis points on 1-year terms and 30 for 5-year terms.
This is in addition to the variable rate hikes Westpac made in response to the RBA decision earlier this May. With headline inflation on the rise, we’re likely to see another cash rate bump soon, which will only increase the cost of housing finance.
RELATED: How to manage higher mortgage repayments
The table below shows the new fixed rates on the Westpac Premier Advantage home loan for owner-occupiers making P&I repayments (LVR < 95%):
Westpac Fixed Options Home Loan (P&I) - 26 May 2022
| Term | Increase | New Rate |
| 1-year | +80 bp | 3.69% p.a. (3.97% p.a. comparison rate*) |
| 2-year | +60 bp | 4.39% p.a. (4.10% p.a. comparison rate*) |
| 3-year | +50 bp | 4.79% p.a. (4.28% p.a. comparison rate*) |
| 4-year | +40 bp | 4.89% p.a. (4.41% p.a. comparison rate*) |
| 5-year | +30 bp | 4.99% p.a. (4.54% p.a. comparison rate*) |
These new rates are 20 basis points cheaper than Westpac’s basic fixed rate home loan option.
Comparing Westpac’s lowest rates with the other Big Four, we can see how the banks stack up against one another.
Big Four fixed rate home loans comparison (OO, P&I) - 26 May 2022
| Bank | Product | 2-year rate | 5-year rate |
| CBA | Fixed Wealth Package | 3.79% p.a. (4.46% p.a. comparison rate*) | 4.49% p.a. (4.67% p.a. comparison rate*) |
| ANZ | Fixed home loan | 3.99% p.a. (3.38% p.a. comparison rate*) | 4.89% p.a. (3.92% p.a. comparison rate*) |
| Westpac | Premier Advantage | 4.39% p.a. (4.10% p.a. comparison rate*) | 4.99% p.a. (4.54% p.a. comparison rate*) |
| NAB | Tailored Choice | 4.49% p.a. (4.62% p.a. comparison rate*) | 4.99% p.a. (4.91% p.a. comparison rate*) |
Fixed rates have been rising for a while now, but this latest round pushes percentages in excess of pre-pandemic levels.
The housing market continues to cool significantly since last year’s boom, driven partially by cost constraints on the part of buyers. The new Labor government has proposed an affordability solution, but real reform is a long way off.
As we watch interest rates going into June, research will be key for buyers making decisions between fixing their loan now, or gambling for variable dips later.
Loan details
Repayment change if rates go up
If you’re in the market for a home loan, have a go using our fixed rate comparison tool to help find competitive rates.
Compare fixed rate home loans - last updated 9 December 2023
-
Home Fixed Rate
Owner Occupier, Principal & Interest, Refinance Only
interest rate
comparison rate
Initial monthly repayment6.40% p.a.
fixed 4 years6.24% 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.
CompareCompareHome Fixed Rate
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.
- interest rate
- 6.40% p.a.
fixed 3 years
- comparison rate
- 6.22% p.a.
- interest rate
- 6.40% p.a.
fixed 3 years
- comparison rate
- 6.22% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - up to $30,000
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Up Home Fixed Rate
-
Basic Home Loan
Fixed, Investment, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment6.79% p.a.
fixed 3 years6.64% 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.
CompareCompareBasic Home Loan
Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.
- interest rate
- 6.79% p.a.
fixed 3 years
- comparison rate
- 6.64% p.a.
- interest rate
- 6.79% p.a.
fixed 3 years
- comparison rate
- 6.64% p.a.
- upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Macquarie Basic Home Loan
* 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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