Westpac continues fixed home loan rate hike party

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on December 08, 2021 Fact Checked
Westpac continues fixed home loan rate hike party

On Wednesday Westpac increased interest rates on fixed home loans by as much as 30 basis points.

The fixed rate rise continues as many lenders continue hiking fixed interest rates while cutting variable interest rates on mortgages.

Noteworthy increases include:

  • Fixed Options P&I 3 yrs 70%: Rose 30 basis points to 3.09% (comparison rate 4.26%)
  • Fixed Options P&I 5 yrs 70%: Rose 30 basis points to 3.59% (comparison rate 4.26%)
  • Investment Fixed P&I 3 yrs 70%: Rose 25 basis points to 3.34% (comparison rate 4.72%)

These increased rates apply to new lending with a maximum loan-to-value ratio of 70% for owner occupiers.

At the start of the year the three year fixed rate for owner occupiers was 2.29% p.a. (4.12% p.a. comparison rate*).

Westpac isn't the only bank to hike interest rates recently, with Suncorp and ME Bank increasing fixed interest rates by up to 62 basis points last month. 

The big four banks also tend to move in unison, with NAB, ANZ and CommBank making similar changes just over a week ago.

These also follow multiple rate hikes over September through November.


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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

Variable
More details
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

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Variable
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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
AN EASY DIGITAL APPLICATION
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AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

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  • 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
NO ONGOING FEES
  • 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
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
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  • 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

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 August 7, 2022. View disclaimer.



Image by Mathias Jensen via Unsplash



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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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