Australia’s second largest bank has hiked fixed rates for the ninth time in the last six months.
Westpac lifted fixed rates for owner-occupiers and investors by up to 0.3 percentage points.
RateCity.com.au compiled Westpac’s home loan rate changes for owner-occupiers:
|
Rate type |
Old rate |
New rate |
Change (% points) |
|---|---|---|---|
|
1-yr fixed |
2.99% |
3.24% |
0.25% |
|
2-yr fixed |
3.19% |
3.49% |
0.3% |
|
3-yr fixed |
3.74% |
4.04% |
0.3% |
|
4-yr fixed |
3.99% |
4.29% |
0.3% |
|
5-yr fixed |
4.29% |
4.59% |
0.3% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate with a 70% LVR
Here’s Westpac’s lowest fixed rates compared to one year ago, according to RateCity.com.au:
|
Rate type |
1 year ago |
Today |
Change (% points) |
|---|---|---|---|
|
1-yr fixed |
1.99% |
3.24% |
1.25% |
|
2-yr fixed |
1.79% |
3.49% |
1.70% |
|
3-yr fixed |
1.88% |
4.04% |
2.16% |
|
4-yr fixed |
1.89% |
4.29% |
2.4% |
|
5-yr fixed |
2.19% |
4.59% |
2.4% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate with a 70% LVR
“Less than five months ago, Westpac still had fixed rates starting with a ‘1’. Today, the bank’s lowest fixed rates now start with a ‘3,’” said Sally Tindall, RateCity.com.au research director. “Australia’s second-largest bank has hiked fixed rates repeatedly in response to rising funding costs, with some rates soaring by 2.4 percentage points in less than a year. CBA, NAB, and ANZ are still offering 1-year fixed rates under 3%, but it’s hard to see these lasting long.”
According to the latest ABS data, the proportion of new fixed-rate borrowing, as a total of all borrowing, has plunged to 28% in the month of February. It was 46% in July 2021.
“It’s no wonder borrowers are starting to turn their back on fixing, particularly if they’re looking at big-four bank rates,” Tindall said. “People who are still looking to lock in a rate would do well to shop around beyond the big four banks. There are still two fixed rates under 2%, but they’re only for 1-year terms.”
RateCity.com.au compiled the lowest big four bank owner-occupier home loan rates:
|
Rate type |
CBA |
Westpac |
NAB |
|---|---|---|---|
|
1-yr fixed |
2.99% |
3.24% |
2.99% |
|
2-yr fixed |
3.29% |
3.49% |
3.49% |
|
3-yr fixed |
3.79% |
4.04% |
3.99% |
|
4-yr fixed |
3.99% |
4.29% |
4.19% |
|
5-yr fixed |
4.29% |
4.59% |
4.49% |
Note: Some loan-to-value ratio requirements apply.
