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. 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.