Westpac dishes out second fixed home loan rate rise for the year

author-avatar By
on February 10, 2022 Fact Checked
Westpac dishes out second fixed home loan rate rise for the year

On Thursday, Westpac lifted fixed home loan rates for the second time in less than three weeks.

Westpac’s fixed rate increase of up to 40 basis points applies to a medley of owner-occupied and investment loans for both principal and interest (P&I) and interest-only (IO) options.

This includes fixed loans from one to five years as well as both packaged and non-packaged loans all bearing a variety of loan-to-value ratios (LVR).

Westpac subsidiaries St George, BankSA, and Bank of Melbourne also increased fixed rates by similar margins.

Some highlights across Westpac’s fixed rate increases for owner-occupiers included:

  • Fixed Options IO 4 Years 70%: 30 basis point increase to 4.39% p.a. (5.04% comparison rate*)
  • Fixed Options IO 5 Years 70%: 40 basis point increase to 4.49% p.a. (5.02% comparison rate*)
  • Fixed Options P&I 4 Years 70%: 30 basis point increase to 3.84% p.a. (4.47% comparison rate*)
  • Fixed Options P&I 5 Years 70%: 30 basis point increase to 4.09% p.a. (4.52% comparison rate*)
  • Premier Advantage Fixed Options IO 4 Years 70% 150k+: 20 basis point increase to 4.09% p.a. (4.28% comparison rate*)
  • Premier Advantage Fixed Options IO 5 Years 70% 150k+: 30 basis point increase to 4.19% p.a. (4.34% comparison rate*)

Increases across Westpac’s fixed home loan rates for investors included:

  • Investment Fixed IO 3 Years 70%: 15 basis point increase to 3.79% p.a. (5.09% comparison rate*)
  • Investment Fixed IO 4 Years 70%: 30 basis point increase to 4.24% p.a. (5.13% comparison rate*)
  • Investment Fixed P&I 3 Years 70%: 20 basis point increase to 3.64% p.a. (4.87% comparison rate*)
  • Investment Fixed P&I 4 Years 70%: 30 basis point increase to 4.04% p.a. (4.89% comparison rate*)
  • Premier Advantage Investment Fixed IO 4 Years 70%: 20 basis point increase to 3.94% p.a. (4.37% comparison rate*)
  • Premier Advantage Investment Fixed P&I 4 Years 70%: 20 basis point increase to 3.74% p.a. (4.14% comparison rate*)

Westpac’s owner occupier four-year fixed rate paying P&I with up to 70% LVR is now 175 basis points higher than it was a year ago.

This means on the ABS-noted average home loan size of $602,000, a borrower could pay an extra $567 per month on a 30-year term, excluding any extra fees.

Westpac economists have pencilled in an August 2022 RBA rate hike of 15 basis points.


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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.


Image by Rick Bella via Pixabay.

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

author-avatar
Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy