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Westpac doubles down with the second round of fixed rate hikes this year
Australia’s second largest bank, Westpac, has today hiked fixed rates for owner-occupiers and investors.
This is the second time the Westpac group, which includes St George, Bank of Melbourne and BankSA, has lifted rates this year, after hiking on 21 January.
Westpac fixed rate changes for owner-occupiers – contact us for changes for investors and from St George, Bank of Melbourne and BankSA
| Fixed term | Old rate | New rate | Change | Repayment diff ($500K) |
| 1 yr fixed | 2.39% | 2.49% | 0.10% | $26 |
| 2 yr fixed | 2.59% | 2.74% | 0.15% | $39 |
| 3 yr fixed | 3.04% | 3.14% | 0.10% | $27 |
| 4 yr fixed | 3.34% | 3.54% | 0.20% | $56 |
| 5 yr fixed | 3.59% | 3.79% | 0.20% | $57 |
Source: RateCity.com.au. Note above rates are for owner-occupiers paying principal and interest on a package rate. Monthly repayments are on a $500K loan over 30 years.
Lenders that have changed at least one rate since 1 Jan
| Rate type | Lenders that have hiked | Lenders that have cut |
| 1 yr fixed | 46 | 3 |
| 2 yr fixed | 53 | 2 |
| 3 yr fixed | 49 | 0 |
| 4 yr fixed | 31 | 0 |
| 5 yr fixed | 44 | 0 |
| Variable | 14 | 19 |
Source: RateCity.com.au. Note some lenders have moved multiple rates.
RateCity.com.au research director, Sally Tindall, said: “The fixed rate hikes from the big four banks have been unrelenting.”
“Westpac has now hiked fixed rates for the second time this year and the sixth time since October,” she said.
“Australia’s biggest banks are no longer competitive when it comes to fixed rates.
“Over the last two years, the big four fought hard to offer competitive fixed rates. Now they’ve completely turned their backs on the fight.
“While the majority of the big four banks’ fixed rates start with a ‘3’, there are still 21 fixed rates under 2 per cent.
“If you want to fix your rate, now might be the time to make your move before rates rise even further. Just make sure you do your research first because the lowest rate deals are becoming harder to find,” she said.
RateCity.com.au database shows there are 63 variable rates still under 2 per cent, however, this figure is down from 71 in January of this year.
“The drop in the number of variable rates under 2 per cent could be one of the first signs the variable rate war is coming to an end.
“In six months, the variable rate market could look entirely different, particularly if the RBA hikes the cash rate in August as many economists are predicting,” she said.
Lowest big four bank owner-occupier home loan rates
| Rate type | CBA | Westpac | NAB | ANZ |
| 1 yr fixed | 2.59% | 2.49% | 2.64% | 2.49% |
| 2 yr fixed | 2.84% | 2.74% | 2.89% | 2.89% |
| 3 yr fixed | 3.24% | 3.14% | 3.34% | 3.39% |
| 4 yr fixed | 3.54% | 3.54% | 3.54% | 3.79% |
| 5 yr fixed | 3.79% | 3.79% | 3.69% | 3.99% |
| Variable | 2.29% | 2.19% | 2.29% | 2.19% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
Lowest owner-occupier home loan rates on RateCity
| Category | Lender | Rate |
| 1 yr fixed | UBank | 1.79% |
| 2 yr fixed | Qudos Bank, Geelong Bank, LCU Southern Cross Credit Union | 1.99% |
| 3 yr fixed | Southern Cross Credit Union | 2.19% |
| 4 yr fixed | BankVic | 2.49% |
| 5 yr fixed | BankVic | 2.59% |
| Variable | Reduce Home Loans | 1.77% |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest, some LVR and location restrictions apply.
Disclaimer
This article is over two years old, last updated on February 10, 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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Product database updated 18 Nov, 2024
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