Westpac sends fixed home loan rates north for the fifth time this year

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on April 07, 2022 Fact Checked
Westpac sends fixed home loan rates north for the fifth time this year

In a case of deja-vu, Westpac has replicated its rate increase from two weeks ago hiking fixed home loan rates by up to 30 basis points.

Westpac’s increase applies to principal and interest (P&I) and interest-only (IO) loans across Fixed, Investment Fixed and Premier Advantage products.

Key changes across Westpac’s home loan portfolio for owner-occupiers, included:

  • Fixed Options P&I 5 Years 70%: 30 basis point increase to 4.89% p.a. (4.85% p.a. comparison rate*)
  • Fixed Options IO 5 Years 70%: 30 basis point increase to 5.09% p.a. (5.27% p.a. comparison rate*)
  • Premier Advantage Fixed Options P&I 5 Years 95% 150k+: 30 basis point increase to 4.69% p.a. (4.27% p.a. comparison rate*)
  • Premier Advantage Fixed Options IO 5 Years 80% 150k+: 30 basis point increase to 4.89% p.a. (4.69% p.a. comparison rate*)

For investors, some key increases included:

  • Investment Fixed P&I 5 Years 80%: 30 basis point increase to 4.99% p.a. (5.21% p.a. comparison rate*)
  • Investment Fixed IO 5 Years 80%: 30 basis point increase to 5.19% p.a. (5.44% p.a. comparison rate*)
  • Premier Advantage Investment Fixed P&I 5 Years 80%: 30 basis point increase to 4.79% p.a. (4.63% p.a. comparison rate*)
  • Premier Advantage Investment Fixed IO 5 Years 80%: 30 basis point increase to 4.99% p.a. (4.86% p.a. comparison rate*)

Read more: Which lenders offer five-year fixed rate home loans

Putting this increase into perspective, a little over a year ago Westpac’s Premier Advantage P&I 150k+ home loan for five years at a loan-to-value ratio (LVR) of 95% was 2.59% p.a. (3.43% p.a. comparison rate*).

In 12 months, this loan has increased 210 basis points to reach a rate of 4.69% p.a. (4.27% p.a. comparison rate*).

On a $600,000 loan, this difference over the course of a year may see home buyers forking out approximately $709 extra in interest per month over a 30-year loan term.


Image by Miguel A Padrinan via Unsplash

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.

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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.

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