Westpac increases fixed home loan rates again

Westpac increased two and three year fixed home loan rates this morning, just over a month after it raised rates on four and five year home loans.

In late April, Westpac hiked four and five year fixed package rates for owner occupiers, and this morning it made similar increases across loans with shorter terms:

• Premier Advantage Fixed Options P&I 2 Years: Up 10 basis points to 1.89% p.a. (3.38% p.a. comparison rate*)
• Premier Advantage Fixed Options P&I 3 Years: Up 10 basis points to 1.98% p.a. (3.30% p.a. comparison rate*)

These comparison rates apply specifically to borrowers with at least a 30% deposit (70% LVR).

Equivalent loan products with 95% LVR were also increased by 10 basis points, as were non-packaged products.

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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Westpac's subsidiaries Bank of Melbourne, St. George, and BankSA increased rates on similar home loans by 10 basis points this morning, however advertised and comparison rates, and LVRs may differ slightly.

These hikes to fixed loan products are consistent with other lenders that have done so lately, which is partly due to the Reserve Bank's Term Funding Facility winding down at the end of the month.

Banks that have increased rates lately include CommBank, NAB, Citi, and UBank, just to name a few. 

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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

• The big four banks are: ANZ, CBA, NAB and Westpac
• The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
• The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
• If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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