- Westpac has made major cuts of up to 80 bps to fixed rate home loans.
- These cuts apply to products for both owner occupiers and investors.
- It is the third major home loan lender to cut fixed rates in the past month.
Both owner occupier and investment loans at Westpac saw fixed rates slashed.
This is the first significant change to home loan rates from Westpac since November 2023, when it hiked both fixed and variable rates after that month's cash rate hike.
It follows Macquarie cutting fixed rates by up to 76 bps on 13 August for both owner occupiers and investors, as well as NAB doing similar in July.
While the overwhelming majority of borrowers are still choosing variable rates, three of the five biggest mortgage lenders in Australia have now cut fixed rates, one after another.
It could simply be a case of the big players keeping pace with each other, but it also suggests the major banks remain unconvinced by RBA boss Michele Bullock's insistence further rate hikes are a genuine possibility.
A fixed rate comeback?
Since mid 2021 when nearly 50% of new mortgages were fixed, borrowers started to opt for variable rates - since August '23 less than 5% of new loans written (including refinances) have had fixed rates.
April this year saw fixed rates on just $590 million of over $51 billion worth of new home loans written, only just over 1%.
However, there has been a slight uptick since, with fixed loans taking 2.6% of the June loans per the ABS.
This remains low, but it's worth also pointing out that from May to June, the value of fixed loans increased despite the overall total going down.
Read more: When should you fix your home loan rate?
Westpac rate changes
These are the new fixed rates for owner occupiers without the Premier Advantage package.
There is a 0.10% discount on these rates for LVRs up to 70%:
| Fixed rate period | Interest rate change (Comparison rate*) |
|---|---|
| One year | Down 50 bps to 6.39% p.a. (8.86% p.a.*) |
| Two years | Down 60 bps to 6.19% p.a. (8.39% p.a.*) |
| Three years | Down 70 bps to 6.19% p.a. (8.16% p.a.*) |
| Four years | Down 70 bps to 6.19% p.a. (7.94% p.a.*) |
| Five years | Down 80 bps to 6.19% p.a. (7.75% p.a.*) |
And for investors:
| Fixed rate period | Interest rate change (Comparison rate*) |
|---|---|
| One year | Down 45 bps to 6.54% p.a. (9.18% p.a.*) |
| Two years | Down 40 bps to 6.39% p.a. (8.85% p.a.*) |
| Three years | Down 60 bps to 6.39% p.a. (8.58% p.a.*) |
| Four years | Down 60 bps to 6.39% p.a. (8.34% p.a.*) |
| Five years | Down 70 bps to 6.39% p.a. (8.13% p.a.*) |
Advertisement
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.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
