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Westpac closes the door on fixed rates starting with a ‘2’
Australia’s second largest bank, Westpac, has today hiked fixed rates for owner-occupiers and investors by up to 0.30 percentage points.
This is the ninth time Westpac has hiked fixed rates in the last six months.
Today’s Westpac home loan rate changes for owner-occupiers – contact us for investor changes
| Rate type | Old rate | New rate | Change (% points) |
| 1-yr fixed | 2.99% | 3.24% | 0.25% |
| 2-yr fixed | 3.19% | 3.49% | 0.30% |
| 3-yr fixed | 3.74% | 4.04% | 0.30% |
| 4-yr fixed | 3.99% | 4.29% | 0.30% |
| 5-yr fixed | 4.29% | 4.59% | 0.30% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate with a 70% loan-to-value ratio (LVR).
Westpac lowest fixed rates – compared to 1 year ago
| Rate type | 1 year ago | Today | Change (% points) |
| 1-yr fixed | 1.99% | 3.24% | 1.25% |
| 2-yr fixed | 1.79% | 3.49% | 1.70% |
| 3-yr fixed | 1.88% | 4.04% | 2.16% |
| 4-yr fixed | 1.89% | 4.29% | 2.40% |
| 5-yr fixed | 2.19% | 4.59% | 2.40% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate with a 70% loan-to-value ratio (LVR).
RateCity.com.au research director, Sally Tindall, said: “Less than five months ago, Westpac still had fixed rates starting with a ‘1’. Today, the bank’s lowest fixed rates now start with a ‘3’.”
“Australia’s second largest bank has hiked fixed rates repeatedly in response to rising funding costs, with some rates soaring by 2.40 percentage points in less than a year,” she said.
“CBA, NAB and ANZ are still offering 1-year fixed rates under 3 per cent, but it’s hard to see these lasting long.”
The latest ABS data shows the proportion of new fixed rate borrowing, as a total of all borrowing, has plunged to 28 per cent in the month of February. In July 2021 it was 46 per cent.
“It’s no wonder borrowers are starting to turn their back on fixing, particularly if they’re looking at big four bank rates,” she said.
“People who are still looking to lock in a rate would do well to shop around beyond the big four banks. There are still two fixed rates under 2 per cent but they’re only for 1-year terms.”
Source: ABS lending indicators Feb 2022. Includes internal and external refinancing, original data.
Lowest big four bank owner-occupier home loan rates
| Rate type | CBA | Westpac | NAB | ANZ |
| 1-yr fixed | 2.99% | 3.24% | 2.99% | 2.99% |
| 2-yr fixed | 3.29% | 3.49% | 3.49% | 3.39% |
| 3-yr fixed | 3.79% | 4.04% | 3.99% | 3.89% |
| 4-yr fixed | 3.99% | 4.29% | 4.19% | 4.29% |
| 5-yr fixed | 4.29% | 4.59% | 4.49% | 4.49% |
| Variable | 2.19% | 2.09% | 2.19% | 2.19% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
Disclaimer
This article is over two years old, last updated on April 7, 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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