Westpac raises fixed home loan rates by up to 80 bp

Collage of a young woman adding another bar on top of an existing blue one, indicating fixed rate hikes.

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

TermIncreaseNew Rate
1-year
+80 bp
3.69% p.a. (3.97% p.a. comparison rate*)
2-year+60 bp4.39% p.a. (4.10% p.a. comparison rate*)
3-year+50 bp4.79% p.a. (4.28% p.a. comparison rate*)
4-year+40 bp4.89% p.a. (4.41% p.a. comparison rate*)
5-year+30 bp4.99% 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

BankProduct2-year rate5-year rate
CBA
Fixed Wealth Package3.79% p.a. (4.46% p.a. comparison rate*)
4.49% p.a. (4.67% p.a. comparison rate*)
ANZFixed home loan3.99% p.a. (3.38% p.a. comparison rate*)4.89% p.a. (3.92% p.a. comparison rate*)
WestpacPremier Advantage4.39% p.a. (4.10% p.a. comparison rate*)4.99% p.a. (4.54% p.a. comparison rate*)
NABTailored Choice4.49% 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

Rate change

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 13 August 2022

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  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    4.49% p.a.
    fixed 1 year
    3.81% 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.

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  • Fixed Rate Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    5.57% p.a.
    fixed 1 year
    4.03% 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 August 2022 and settle by 31 October 2022.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.55% p.a.
    fixed 1 year
    3.91% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.99% p.a.
    fixed 1 year
    3.63% 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 2022.

    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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