Westpac lifts fixed home loan rates - again

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on March 02, 2022 Fact Checked
Westpac lifts fixed home loan rates - again

Westpac has increased fixed home loan rates by between 15 and 30 basis points - the third time it has done so this year.

Wednesday's increases apply to both owner occupier and investment home loans fixed between one and five years.

Some of the key loans affected include:

  • Fixed Options P&I 2 Years 95%: 15 basis point increase to 3.19% p.a. (4.47% p.a. comparison rate*)
  • Fixed Options P&I 4 Years 95%: 15 basis point increase to 3.99% p.a. (4.52% p.a. comparison rate*)
  • Investment Fixed P&I 2 Years 80%: 20 basis point increase to 3.34% p.a. (4.94% p.a. comparison rate*)
  • Investment Fixed P&I 4 Years 80%: 15 basis point increase to 4.19% p.a. (4.94% p.a. comparison rate*)

This marks the third time this year the major lender has increased fixed home loan rates after hikes in February and January.

Similar rate increases also applied to Westpac subsidiaries Bank of Melbourne, St George, and BankSA.

The four-year owner occupier loan is 180 basis points (1.80%) higher than it was a year ago.

On Tuesday the ABS reported the average home loan size for owner occupiers was $619,000.

Using this loan amount over a 30-year term, 180 basis points' difference would add $605 per month in interest to the home loan.

RBA data indicates fixed rates on the whole are moving sharply upwards, as seen in the graph below, prompting many to wonder if it's too late to fix their home loan.

The RBA has not changed the cash rate since November 2020, and while economists forecast it will as early as June, the war unfolding in Ukraine is providing a lot of economic uncertainty.


Photo by Mudassir Ali from Pexels

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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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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