Westpac follows ABCs and increases fixed rates

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Westpac has now followed the ABC’s lead and increased fixed mortgage rates.

Westpac has increased its fixed rates at 2, 3, 4 and 5 years by 0.10% for owner-occupiers paying principal and interest.

Last Friday, the CBA raised its fixed rates to 2, 3 and 4 years for owner-occupiers by 0.10% and ING raised its fixed rates from 0.05 to 0.20%.

Westpac mortgage rate changes

To lend

Old rate

New rate

Switch

2 years fixed 1.89% 1.99% 0.10%
3 years fixed 1.98% 2.08% 0.10%
4 years fixed 2.49% 2.59% 0.10%
5 years fixed 2.79% 2.89% 0.10%

To note: The above rates are for homeowners who pay principal and interest on a flat rate with an annual fee of $ 395 for a loan-to-value ratio of 70% or less.

Rate changes in the past month: lenders who have changed at least one rate

Lenders who cut

Lenders who have increased

1 year fixed 8 2
2 years fixed 5 7
3 years fixed 2 17
4 years fixed 0 12
5 years fixed 0 11
Variable 27 2

Source: RateCity.com.au. Data is from September 20 to October 19, 2021 inclusive.

RateCity.com.au’s research director, Sally Tindall, said: “Westpac has followed the Big Four CBA rivals in raising fixed rates. “

“These fixed rate hikes suggest that the days of super-cheap financing may be numbered,” she said.

“While the RBA insists that the next cash rate hike will not happen until at least 2024, banks anticipate an increase in the cost of funding once borders reopen and the economy rebounds.

“While Westpac’s fixed rate hikes today are relatively small, people waiting for a home loan who haven’t locked in their rate will understandably be annoyed.

“Westpac has kept its 1 and 2 year fixed rates below 2% for homeowners paying principal and interest in order to remain competitive in a market where refinancing is at record levels.

“While the writing may be on the wall for fixed rates, the party is not over yet – there are still 154 fixed rates below 2 percent,” she said.

The Big Four Banks’ Lowest Rates for Homeowner Home Loans

ABC

Westpac *

NAB

ANZ

1 year fixed 1.99% 1.99% 2.09% 2.04%
2 years fixed 2.09% 1.99% 1.99% 1.94%
3 years fixed 2.29% 2.08% “ 2.18% 2.04%
4 years fixed 2.39% 2.59% 2.49% 2.49%
5 years fixed 2.99% 2.89% 2.79% 2.69%
Variable 2.29% 1.99% for 2 years then 2.49% 2.69% 2.72%

Source: RateCity.com.au. *To note: CBA and Westpac rates correspond to a loan-to-value ratio of up to 70%.

Lowest rates from RateCity.com.au database

Lender Announced price
1 year fixed Big Bank, Bank of Us 1.59%
2 years fixed Big Bank 1.59%
3 years fixed Community First Credit Union 1.79%
4 years fixed Freedom loan 2.27%
5 years fixed Freedom loan 2.27%
Variable Reduce home loans 1.77%

Source: RateCity.com.au Note: Rates are for homeowners who pay principal and interest. Certain LVR and localization requirements apply.


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