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No end in sight: Westpac, ANZ hike fixed rates again
Big four banks, Westpac and ANZ, have both hiked fixed rates again today, as the cost of fixed rate funding continues to surge north.
Westpac has hiked for the second time in a week, after increasing fixed rates on 7 April. The majority of today’s changes from Australia’s second largest lender were hikes. However, in a surprise move, the bank has cut its 1-year fixed rates – more than reversing its hike from last week.
ANZ has hiked its 1- to 5-year fixed rates by up to 0.60 percentage points.
Westpac fixed rate changes for owner-occupiers
| Rate type | Old rate | New rate | Change |
| 1-yr fixed | 3.24% | 2.79% | -0.45% |
| 2-yr fixed | 3.49% | 3.69% | 0.20% |
| 3-yr fixed | 4.04% | 4.19% | 0.15% |
| 4-yr fixed | 4.29% | 4.39% | 0.10% |
| 5-yr fixed | 4.59% | 4.59% | 0.00% |
Source: RateCity.com.au. Note: Above rates are for owner-occupiers paying principal and interest on a package rate.
ANZ fixed rate changes for owner-occupiers
| Rate type | Old rate | New rate | Change |
| 1-yr fixed | 2.99% | 3.29% | 0.30% |
| 2-yr fixed | 3.39% | 3.99% | 0.60% |
| 3-yr fixed | 3.89% | 4.39% | 0.50% |
| 4-yr fixed | 4.29% | 4.69% | 0.40% |
| 5-yr fixed | 4.49% | 4.89% | 0.40% |
Source: RateCity.com.au. Note: Above rates are for owner-occupiers paying principal and interest.
RateCity.com.au database analysis:
- Westpac has hiked fixed rates 6 times since the start of the year.
- ANZ has hiked 4 times since the start of the year.
- There are just 2 fixed rates under 2% remaining. Both are just for 1 year.
RateCity.com.au research director, Sally Tindall, said there was no clear end in sight for fixed rate hikes.
“The fixed rate hikes have picked up again in pace and severity. Today’s increases from ANZ are in some cases up to 0.60 percentage points, while CBA’s hikes from Monday were up to 0.90 percentage points,” she said.
“These aren’t minor adjustments from the big banks, they’re sizeable hikes as markets price in higher funding costs.
“It’s hard to see many customers rushing to lock in a rate well above 4 per cent when there is still significant uncertainty around how high Australia’s cash rate will go.
“Already we’ve seen the percentage of new fixed lending nosedive to 28 per cent. These hikes are likely to continue to push more borrowers back to variable rates when their fixed term ends.
“The majority of big four bank rates now start with a ‘4’. It’s crazy to think that just 12 months ago, Australia’s three largest lenders were offering fixed-rate options starting with a ‘1’.
“NAB is now the only big four bank offering a 3-year rate under 4 per cent, however, it’s unlikely to last beyond the month,” she said.
Lowest big four bank owner-occupier home loan rates
April 14 2022
| Rate type | CBA | Westpac | NAB | ANZ |
| 1-yr fixed | 2.99% | 2.79% | 2.99% | 3.29% |
| 2-yr fixed | 3.79% | 3.69% | 3.49% | 3.99% |
| 3-yr fixed | 4.19% | 4.19% | 3.99% | 4.39% |
| 4-yr fixed | 4.39% | 4.39% | 4.19% | 4.69% |
| 5-yr fixed | 4.49% | 4.59% | 4.49% | 4.89% |
| Variable | 2.19% | 2.09% | 2.19% | 2.19% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
April 14 2021
| Rate type | CBA | Westpac | NAB | ANZ |
| 1-yr fixed | 2.09% | 1.99% | 2.09% | 2.04% |
| 2-yr fixed | 1.94% | 1.79% | 1.89% | 2.04% |
| 3-yr fixed | 2.14% | 1.88% | 1.98% | 2.04% |
| 4-yr fixed | 2.19% | 1.89% | 1.98% | 2.24% |
| 5-yr fixed | 2.99% | 2.19% | 2.24% | 2.24% |
| Variable | 2.69% | 2.69% | 2.69% | 2.72% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
Disclaimer
This article is over two years old, last updated on April 14, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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