Westpac and NAB continue to hike fixed home loan rates

author-avatar By
on May 27, 2022 Fact Checked
Westpac and NAB continue to hike fixed home loan rates

Two of the big-four took the reins this week increasing fixed home loan rates, while Great Southern Bank increased both fixed and variable rates.

For the seventh time this year, Westpac increased fixed home loan rates by up to 80 basis points with its subsidiaries in St George, Bank of Melbourne and Bank SA also increasing.

Westpac continues to hold top-spot amongst the big-four with the highest number of fixed rate home loan increases to date in 2022. 

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

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

  • Fixed Options P&I 1 Year 70%: 80 basis point increase to 3.89% p.a. (4.88% p.a. comparison rate*)
  • Fixed Options P&I 3 Years 95%: 50 basis point increase to 4.99% p.a. (5.01% p.a. comparison rate*)
  • Premier Advantage Fixed Options P&I 5 Years 95% 150k+: 30 basis point increase to 4.99% p.a. (4.54% p.a. comparison rate*)
  • Premier Advantage Fixed Options IO 5 Years 70% 150k+: 40 basis point increase to 5.49% p.a. (5.03% p.a. comparison rate*)

For investors, some key increases included:

  • Investment Fixed P&I 1 Year 70%: 70 basis point increase to 3.99% p.a. (5.38% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years 80%: 40 basis point increase to 5.09% p.a. (5.44% p.a. comparison rate*)
  • Premier Advantage Investment Fixed P&I 5 Years 70%: 20 basis point increase to 4.99% p.a. (4.79% p.a. comparison rate*)
  • Premier Advantage Investment Fixed IO 5 Years 70%: 20 basis point increase to 5.29% p.a. (5.07% p.a. comparison rate*)

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

NAB

NAB has increased fixed home loan rates for owner occupiers and investors by up to 90 basis points. 

These increases apply across a number of products including Tailored, Investment and Choice Package.

Highlights of fixed rate increases for owner occupiers across NAB's home loan portfolio included:

  • Tailored Fixed P&I 1 Year 95%: 60 basis point increase to 3.69% p.a. (4.80% p.a. comparison rate*)
  • Tailored Fixed P&I 3 Years 95%: 50 basis point increase to 5.09% p.a. (4.99% p.a. comparison rate*)
  • Tailored Fixed IO 1 Year 95%: 80 basis point increase to 4.99% p.a. (5.09% p.a. comparison rate*)
  • Tailored Fixed IO 3 Years 95%: 35 basis point increase to 5.44% p.a. (5.15% p.a. comparison rate*)

For investors, some key increases included:

  • Investment Tailored Fixed P&I 1 Year 90%: 90 basis point increase to 4.19% p.a. (5.38% p.a. comparison rate*)
  • Investment Tailored Fixed IO 1 Year 90%: 40 basis point increase to 4.29% p.a. (5.49% p.a. comparison rate*)
  • Choice Package Investment Tailored Fixed - P&I 1 Year 150k+: 90 basis point increase to 4.09% p.a. (5.09% p.a. comparison rate*)

Around the grounds

ING

ING has increased fixed home loan rates for owner occupiers and investors by up to 80 basis points. 

Key changes across ING's home loan portfolio for owner-occupiers included:

  • Residential Fixed 1 Year 80-90%: 80 basis point increase to 4.19% p.a. (2.66% p.a. comparison rate*)
  • Residential Fixed 3 Years 80-90%: 50 basis point increase to 5.19% p.a. (3.20% p.a. comparison rate*)
  • Orange Advantage Residential Fixed 1 Year ≤ 80%: 80 basis point increase to 3.99% p.a. (2.83% p.a. comparison rate*)
  • Orange Advantage Residential Fixed 3 Years 90-95%: 50 basis point increase to 5.54% p.a. (3.65% p.a. comparison rate*)

Key changes across ING's home loan portfolio for investors included:

  • Investment Fixed P&I 1 Year 80%: 80 basis point increase to 4.29% p.a. (3.04% p.a. comparison rate*)
  • Investment Fixed IO 1 Year 80%: 80 basis point increase to 4.49% p.a. (3.15% p.a. comparison rate*)

Great Southern Bank

Great Southern Bank took an alternative route to the big four, increasing both fixed and variable rate home loans for owner occupiers and investors.

The mutual bank follows the lead of ANZ, which previously increased variable home loan rates for investors out of lockstep with the RBA earlier this week. 

Variable rate increases were significantly smaller than fixed rate increases, rising up to 10 basis points compared to 125 basis points for fixed rates.

Highlights of variable rate increases included:

  • Basic Variable P&I 70-80%: 5 basis point increase to 2.49% p.a. (2.54% p.a. comparison rate*)
  • Investment Basic Variable IO 70-80%: 5 basis point increase to 2.94% p.a. (2.87% p.a. comparison rate*)
  • Offset Construction Variable 70-80%: 10 basis point increase to 3.24% p.a. (2.80% p.a. comparison rate*)
  • Investment Offset Construction Variable 70-80%: 10 basis point increase to 3.69% p.a. (3.29% p.a. comparison rate*)

Key fixed rate increases across Great Southern Bank's home loan portfolio included:

  • Fixed P&I 1 Year 95%: 125 basis point increase to 4.84% p.a. (4.13% p.a. comparison rate*)
  • Fixed IO 1 Year 90%: 125 basis point increase to 5.34% p.a. (4.18% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years 90%: 70 basis point increase to 5.39% p.a. (4.74% p.a. comparison rate*)
  • Investment Fixed IO 3 Years 90%: 70 basis point increase to 5.44% p.a. (4.76% p.a. comparison rate*)

Advertisement

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
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
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 June 29, 2022. View disclaimer.


    Image by Redd 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.

    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