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Westpac hikes fixed rates for 3rd time in a month

Westpac hikes fixed rates for 3rd time in a month

Australia’s second largest bank, Westpac, has hiked its fixed rates for the third time in a month.

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

Like CBA and ANZ, Westpac now has no advertised fixed home loan rates under 2 per cent. Only NAB has one fixed rate starting with a ‘1’.

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

Rate typeOld lowest rateNew lowest rateChangeMonthly repayments – difference, $500K loan
1-year fixed

1.99%

2.24%

+0.25%

$63

2-year fixed

1.99%

2.24%

+0.25%

$63

3-year fixed

2.29%

2.59%

+0.30%

$78

4-year fixed

2.69%

2.89%

+0.20%

$53

5-year-fixed

2.99%

3.09%

+0.10%

$27

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. Monthly repayments are based on a $500K, 30-year loan over the fixed rate term.

Previous Westpac owner-occupier fixed rate hikes this month:

Fixed home loan rates rising quickly

Analysis of the RateCity.com.au database shows banks are moving swiftly to hike fixed rates.

In the last month 16 lenders have hiked fixed rates twice, including CBA, NAB and ANZ, while Westpac is the first bank to hike fixed rates three times.

Lenders that have moved at least one rate in the last 1 month (17 Oct to 16 Nov 2021)

Rate typeLenders that have cutLenders that have hiked
1-year fixed

14

24

2-year fixed

5

47

3-year fixed

1

52

4-year fixed

2

38

5-year-fixed

3

47

Variable

38

4

Note: A number of lenders have changed multiple home loan rates.

RateCity.com.au research director, Sally Tindall, said: “The banks have hit the accelerator on fixed rate hikes. They’re coming in thick and fast and they’re typically getting bigger with each hike.

“At first, the fixed rate hikes were isolated to longer-term rates, but now banks are lifting across the board at an extraordinary pace.

“In the last month 16 lenders have hiked their fixed rates twice, including all big four banks. Westpac has now hiked its fixed rates three times in one month.

“These fixed rate hikes are more than speculation the cash rate could rise earlier than expected. The cost of wholesale funding is increasing, and the banks have decided it’s not sustainable to keep fixed rates at ultra-low levels.

“Customers waiting in the queue for their fixed loans to settle will be rightly frustrated at these rapid rate rises, unless they had locked in their rate.

“In this environment where banks are hiking multiple times a month, customers would do well to consider paying a rate lock fee, particularly when some banks are struggling to process loans quickly.

“While there are still 95 fixed rates under 2 per cent, the list is shrinking quickly. By this time next year, it’s possible there may be next to no fixed rates starting with a ‘1’,” she said.

21.11.16 loans under 2%.JPG

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1 yr fixed

2.34%

2.24%

1.99% 

2.29%

2 yr fixed

2.34%

2.24%

2.34%

2.39%

3 yr fixed

2.69%

2.59%

2.79%

2.79%

4 yr fixed

2.89%

2.89%

2.89%

2.99%

5 yr fixed

3.09%

3.09%

3.09%

3.19%

Variable

2.29%

1.99% for 2yrs then 2.49%

2.29%

2.49%

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

Lowest rates on the RateCity.com.au database

LenderAdvertised rate
1 yr fixedGreater Bank, Bank of Us

1.59%

2 yr fixedGreater Bank

1.59%

3 yr fixedMOVE Bank

1.89%

4 yr fixedBankVic, Southern Cross Credit Union, Credit Union SA, Hume Bank, Regional Australia Bank

2.39%

5 yr fixedBank Australia

2.40%

VariableReduce Home Loans

1.77%

Note Rates are for owner-occupiers paying principal and interest, LVR and postcode requirements apply for some loans.

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This article was reviewed by Janet Lee before it was published as part of RateCity's Fact Check process.

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