Westpac hikes fixed rates



Australia’s second largest bank has hiked fixed for the ninth time in the last six months.

lifted fixed for owner-occupiers and investors by up to 0.3 percentage points.

RateCity.com.au compiled ’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 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. T. 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.

source