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Fixed rate hikes snowball as Westpac increases rates 4 times in 2 months

Fixed rate hikes snowball as Westpac increases rates 4 times in 2 months

Australia’s second largest bank, Westpac, has increased fixed rates for the fourth time in less than two months.

Today’s hikes affect both new owner-occupier and investor rates across the Westpac Group, including St George, Bank of Melbourne and BankSA.

Today’s Westpac hikes for owner-occupiers paying principal & interest

Rate typeOld lowest rateNew lowest rateChange
1-year fixed

2.24%

2.34%

+0.10%

2-year fixed

2.24%

2.49%

+0.25%

3-year fixed

2.59%

2.89%

+0.30%

4-year fixed

2.89%

3.19%

+0.30%

5-year-fixed

3.09%

3.39%

+0.30%

Note: Above rates are for an LVR of less than 70%, for owner-occupiers paying principal and interest on a package rate with an annual fee of $395.

Please contact us for all rate changes for Westpac, St George, Bank of Melbourne and BankSA.

Previous Westpac owner-occupier fixed rate hikes in the past two months:

Since October, Westpac’s 3-year fixed rate has increased by a cumulative 0.91 percentage points, while its 2-year rate has increased by 0.60 percentage points.

2 months agoTodayChange (% points)Diff. in monthly repayments ($500K)
1-year fixed

1.99%

2.34%

0.35%

$89 

2-year fixed

1.89%

2.49%

0.60%

$152 

3-year fixed

1.98%

2.89%

0.91%

$235 

4-year fixed

2.49%

3.19%

0.70%

$187 

5-year fixed

2.79%

3.39%

0.60%

$163 

Source: RateCity.com.au. Note: monthly repayments are for the fixed rate term and are based on an owner-occupier paying principal and interest taking out a $500,000, 30-year loan.

RateCity.com.au research director, Sally Tindall, said the number of fixed rate hikes had started to snowball.

“Westpac has now hiked its fixed rates four times in just over seven weeks, with its 3-year rate for owner-occupiers rising by almost a full percentage point in that time,” she said.

“Anyone considering a fixed rate with Westpac will be gobsmacked by these increases, but they’re certainly not isolated to one bank. Many people thinking about fixing their rate may now be reconsidering their plans.

“The average borrower taking out a $500,000, 3-year fixed rate loan with Westpac today will be paying $235 more a month than someone who took out the same loan two months ago.

“Unfortunately, we haven’t seen the end of these fixed rate hikes. We expect them to keep rolling in as we head into 2022,” she said.

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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