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Fixed rates on the rise again with Westpac next to increase

Eden Radford avatar
Eden Radford
- 3 min read
Fixed rates on the rise again with Westpac next to increase

Westpac has today increased 1- and 2-year fixed rates for owner-occupiers and investors by up to 0.40 percentage points.

As a result, Westpac no longer has a fixed rate under 6 per cent.

Its subsidiaries St George, Bank of Melbourne, BankSA have also increased fixed rates.

Westpac fixed rate changes

For owner-occupiers paying principal and interest

Loan termOld rateNew rateChange %-pts
1-yr6.19%6.49%+0.30
2-yr5.99%6.39%+0.40

Source: RateCity.com.au. Rates are for customers taking out a package loan which includes a $395 annual fee.

The move follows on from fixed rate hikes announced last Friday by CBA, which also take effect today, and ANZ fixed rate increases last Tuesday.

RateCity.com.au research shows that 26 lenders have increased at least one fixed rate in the last week, while a total of 82 lenders have increased at least one fixed rate in the last month.

This means 73 per cent of lenders on the RateCity.com.au database have increased their fixed rates in the last month.

Lenders that have changed at least one fixed rate in the last month

Rate typeLenders that have cutLenders that have hiked
1-year fixed780
2-year fixed878
3-year fixed873
4-year fixed434
5-year-fixed844

Source: RateCity.com.au. Note some lenders have changed more than one fixed rate.

RateCity.com.au research director, Sally Tindall, said: “Westpac has followed in CBA and ANZ’s wake by hiking short-term fixed rates above the 6 per cent mark.”

“Fixed rates are clearly not a priority for the big four, with three of the four hiking in the last eight days,” she said.

“NAB is the only big four bank still offering a fixed rate under 6 per cent. However at 5.99 per cent, this rate isn’t likely to last long.

“This flood of hikes will push fixing further out of favour with the thousands of borrowers coming off their record-low fixed rates each week.

“For those still hoping to lock in a new rate, it could be time to think outside the box. The big four banks might have been leading the competition a couple of years ago, but they’ve well and truly left the arena since then,” she said.

Big four banks’ lowest advertised fixed rates

Fixed termCBAWestpacNABANZ
1-yr6.74%6.49%6.24%6.54%
2-yr6.84%6.39%6.14%6.54%
3-yr6.64%6.39%5.99%6.39%
4-yr6.69%6.39%6.09%6.49%
5-yr6.69%6.69%6.19%6.59%

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.

Lowest fixed rates on RateCity.com.au

Fixed termLenderRate
1-yrIllawarra Credit Union5.40%
2-yrAustralian Mutual Bank5.23%
3-yrAustralian Mutual Bank5.33%
4-yrQudos Bank5.59%
5-yrRACQ5.34%

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.

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Product database updated 21 May, 2024

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