- Westpac has lifted both its fixed rate home loan and term deposit interest rates this week
- It joins other banks and financial institutions in preparing for further cash rate increases expected in 2026
- Key inflation data is due to be released on Wednesday
Westpac has added another 15 basis points to its fixed home loan rates this week, just three weeks after raising them by up to 50 basis points.
The latest round of increases takes Westpac's best fixed home loan rate to 6.29% p.a. (6.55% p.a. comparison rate*) for owner occupiers with up to 70% loan-to-value ratio (LVR) taking out a Premier Advantage package loan fixed for two years.
Premier Advantage loans offer a 0.20% discount on the standard fixed rate (for loans over $150,000) and an extra 0.10% discount for borrowers with LVRs up to 70%.
They come with an annual fee of $395.
Here's a run-through of some of the new owner occupier rates for borrowers with 80% LVR making principal and interest (P&I) repayments:
| Loan | New rate | Comparison rate* |
| Fixed Options | ||
| 1 year | 6.69% p.a. | 8.50% p.a. |
| 2 years | 6.59% p.a. | 8.29% p.a. |
| 3 years | 6.79% p.a. | 8.17% p.a. |
| 4 years | 6.99% p.a. | 8.10% p.a. |
| 5 years | 6.99% p.a. | 7.98% p.a. |
| With package discount | ||
| 1 year | 6.49% p.a. | 6.64% p.a. |
| 2 years | 6.39% p.a. | 6.65% p.a. |
| 3 years | 6.59% p.a. | 6.72% p.a. |
| 4 years | 6.79% p.a. | 6.82% p.a. |
| 5 years | 6.79% p.a. | 6.86% p.a. |
Westpac new investor fixed home loan rates
Westpac's investor loans also lifted by 15 basis points across the board.
Below are P&I and interest-only (IO) rates for investors with up to 80% LVR:
| Loan | New rate (P&I) | Comparison rate* | New rate (IO) | Comparison rate* |
| Fixed Options | ||||
| 1 year | 6.84% p.a. | 9.00% p.a. | 6.94% p.a. | 9.01% p.a. |
| 2 years | 6.74% p.a. | 8.75% p.a. | 6.84% p.a. | 8.77% p.a. |
| 3 years | 6.94% p.a. | 8.59% p.a. | 7.04% p.a. | 8.63% p.a. |
| 4 years | 7.14% p.a. | 8.49% p.a. | 7.24% p.a. | 8.53% p.a. |
| 5 years | 7.14% p.a. | 8.34% p.a. | 7.24% p.a. | 8.40% p.a. |
| With package discount | ||||
| 1 year | 6.64% p.a. | 6.84% p.a. | 6.74% p.a. | 6.84% p.a. |
| 2 years | 6.54% p.a. | 6.83% p.a. | 6.64% p.a. | 6.84% p.a. |
| 3 years | 6.74% p.a. | 6.90% p.a. | 6.84% p.a. | 6.91% p.a. |
| 4 years | 6.94% p.a. | 7.00% p.a. | 7.04% p.a. | 7.01% p.a. |
| 5 years | 6.94% p.a. | 7.04% p.a. | 7.04% p.a. | 7.05% p.a. |
Westpac also lifts term deposit rates
Less than 24 hours after raising its fixed home loan rates, Westpac also increased a raft of its term deposit rates, some by up to 1.70% p.a.
The bank's one- to five-year term deposits saw the biggest hikes, all up by more than 1%, with 12- and 24-month rates now hitting the 5.00% mark with interest paid annually.
But even with the hefty increases, the new rates remain lower than Westpac's current special offer deal, as follows:
| Term | Online rate | In-branch rate |
| 24 months | 5.20% p.a. | 5.10% p.a. |
| 12 months | 5.10% p.a. | 5.00% p.a. |
All Westpac term deposit rates apply to balances between $5,000 and $2 million with interest paid end of term.
Lower rates apply to those wanting more frequent interest payments.
See also: Big four banks term deposit rates
Other brands in the Westpac group - St George Bank, Bank of Melbourne, and BankSA - also raised their fixed home loan and term deposit rates at the same time.
Rates lifting across the market
While Westpac was the biggest bank increasing its interest rates this week, it certainly wasn't alone.
Here's a run-through of other rate movers on the home loan and term deposit markets this week:
Home loans
- Ubank - 20-basis point increase across the board
- Bank Australia/Qudos Bank - increased one- and two-year fixed rates by 0.15%
- Bank of us - hiked fixed rate home loans by up to 45 basis points
- RACQ Bank - increased fixed rate home loans by up to 50 basis points
- Teachers Mutual Group - raised home loan rates, including some variable rates, by 10 basis points
See also: Should you fix your home loan interest rate?
Term deposits
In the term deposit market, Heartland Bank made a statement by lifting its nine- and 12-month rates to among the highest on the market.
Heartland's new rates are as follows:
- 12 months - 5.55% p.a.
- nine months - 5.45% p.a.
Both rates apply to deposit amounts of $10,000 or more with interest paid end of term.
Judo Bank also lifted its one-year rate by 10 basis points, taking it to 5.45% p.a. for deposit amounts $1,000 or more with interest paid at maturity.
Macquarie Bank also tweaked higher its nine-month term deposit rates .
See also : Compare high-interest term deposit rates
What's next for interest rates?
Financial markets are awaiting the release of key March Consumer Price Index (CPI) data, due on Wednesday 29 April.
It will be the first CPI read to reflect the inflationary pressures of increased fuel prices, triggered by the ongoing conflict in the Middle East.
ANZ economists expect headline inflation for the March quarter to print at 4.1% year-on-year, its highest rate since 2023.
They also forecast trimmed mean inflation, which doesn't include fuel costs, will come in at 3.6% for the quarter.
ANZ's economists, along with many others, believe this leaves the Reserve Bank of Australia (RBA) with little alternative but to increase the cash rate by 25 basis points to 4.35% at its May meeting.
The RBA's monetary policy board to scheduled to meet on 4-5 May.
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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.
| 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 |
