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.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 15 December 2024 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.79 % p.a.
    Fixed 2 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,931
    Go to site

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

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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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