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 change
If you’re in the market for a home loan, have a go using our fixed rate comparison tool to help find competitive rates.
-
Fixed Rate Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 5% min deposit
Go to site- Interest rate
-
5.09
%
p.a.
Fixed 2 years
- Comparison rate
-
5.43
%
p.a.
- Initial monthly repayment
-
$2,712
- No ongoing annual fees
- Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
- Lock in for up to 5 years.
- interest rate
-
1 year - 5.24% p.a. (5.48% p.a. comparison rate)
2 years - 5.09% p.a. (5.43% p.a. comparison rate)
3 years - 5.29% p.a. (5.46% p.a. comparison rate)
4 years - 5.69% p.a. (5.58% p.a. comparison rate)
5 years - 5.69% p.a. (5.60% p.a. comparison rate)
- Fixed loan revert rate
-
5.48% p.a.
- Upfront fees
-
$300.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$395.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to $25,000 during fixed period
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Additional repayments allowed up to $25,000 during the fixed period.
- Other benefits
-
-
- Special Offers
-
-
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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.
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