Westpac increases fixed home loan rates, slashes variable

Westpac increases fixed home loan rates, slashes variable

For the fourth time this year, Westpac has hiked fixed home loan rates for owner occupiers and investors by up to 30 basis points.

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

Across Westpac’s home loan portfolio, some of these changes included:

  • Fixed Options P&I 3 Years 70%: 30 basis point increase to 4.04% p.a. (4.58% p.a. comparison rate*)
  • Fixed Options P&I 4 Years 95%: 30 basis point increase to 4.29% p.a. (4.62 % p.a. comparison rate*)
  • Investment Fixed IO 3 Years 70%: 30 basis point increase to 4.39% p.a. (5.52% p.a. comparison rate*)
  • Investment Fixed P&I 4 Years 80%: 30 basis point increase to 4.49% p.a. (5.05% p.a. comparison rate*)

Winding the clock back to November, Westpac’s Premier Advantage P&I 150k+ home loan for three years at a loan-to-value ratio (LVR) of 70% was 2.29% p.a. (3.38% p.a. comparison rate*).

Four months later, that same home loan has increased 145 basis points to a fixed rate of 3.74% p.a. (3.74% p.a. comparison rate).

On a $600,000 home loan, waiting that extra four months from November to March could result in home buyers paying approximately $469 extra in interest per month across a 30-year loan term.

Westpac's rate-locking feature applies for 90 days and costs 0.10% of the loan amount charged - for example $600 on a $600,000 home loan.

See Also: What is rate locking and is it worth it?

Westpac makes cuts to some variable products

Westpac cut three ‘Flexi First’ variable rate offerings across P&I and IO loans for owner occupiers and investors.

These changes include:

  • Flexi First Option P&I 95% Special Offer: 10 basis point decrease to 2.19% p.a. (2.20% p.a. comparison rate*)
  • Investment Flexi First Option IO 70% Special Offer: 20 basis point decrease to 2.79% p.a. (2.80% p.a. comparison rate*)
  • Investment Flexi First Option IO 80% Special Offer: 20 basis point decrease to 2.89% p.a. (2.90% p.a. comparison rate*)

Read more: Is it too late to fix your home loan?


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.


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