Westpac doubles down with second round of fixed rate hikes this year

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Australia’s second largest bank, Westpac, today raised fixed rates for homeowners and investors.

This is the second time Westpac Group, which includes St George, Bank of Melbourne and BankSA, has raised rates this year, following a hike on January 21.

Westpac Flat Rate Changes for Homeowners – contact us for changes for investors and from St George, Bank of Melbourne and BankSA

Determined time Old tariff New tariff Change Reimbursement difference ($500,000)
1 year fixed

2.39%

2.49%

0.10%

$26

2 years fixed

2.59%

2.74%

0.15%

$39

3 years fixed

3.04%

3.14%

0.10%

$27

4 years fixed

3.34%

3.54%

0.20%

$56

5 years fixed

3.59%

3.79%

0.20%

$57

Source: RateCity.com.au. Note that the above rates are for homeowners paying principal and interest on a flat rate. Monthly repayments are on a $500,000 loan over 30 years.

Lenders who have changed at least one rate since January 1

Rate Type Lenders who have increased Lenders who cut
1 year fixed

46

3

2 years fixed

53

2

3 years fixed

49

0

4 years fixed

31

0

5 years fixed

44

0

Variable

14

19

Source: RateCity.com.au. Note that some lenders have moved multiple rates.

RateCity.com.au Research Director Sally Tindall said: “Fixed rate hikes from the big four banks have been relentless.

“Westpac has now raised its fixed rates for the second time this year and the sixth time since October,” she said.

“Australia’s largest banks are no longer competitive on fixed rates.

“Over the past two years, the Big Four have fought to offer competitive fixed rates. Now they have completely turned their backs on combat.

“While the majority of fixed rates from the big four banks start with a ‘3’, there are still 21 fixed rates below 2%.

“If you want to fix your rate, now may be the time to act before rates rise even further. Just be sure to do your research first, as the cheapest deals are getting harder and harder to find,” she said.

The RateCity.com.au database shows there are 63 variable rates still below 2%, however, this figure is down from 71 in January this year.

“The drop in the number of variable rates below 2% could be one of the first signs that the variable rate war is coming to an end.

“Six months from now, the variable rate market could look completely different, especially if the RBA raises the spot rate in August, as many economists are predicting,” she said.

The Big Four Banks’ Lowest Home Loan Rates for Homeowners

Rate Type ABC Westpac NAB ANZ
1 year fixed

2.59%

2.49%

2.64%

2.49%

2 years fixed

2.84%

2.74%

2.89%

2.89%

3 years fixed

3.24%

3.14%

3.34%

3.39%

4 years fixed

3.54%

3.54%

3.54%

3.79%

5 years fixed

3.79%

3.79%

3.69%

3.99%

Variable

2.29%

2.19%

2.29%

2.19%

Source: RateCity.com.au. Note: Certain LTV requirements apply.

Lowest homeowner mortgage rates on RateCity

Category Lender Rate
1 year fixed UBank

1.79%

2 years fixed Qudos Bank, Geelong Bank, LCU Southern Cross Credit Union

1.99%

3 years fixed Credit Union of the Southern Cross

2.19%

4 years fixed BankVic

2.49%

5 years fixed BankVic

2.59%

Variable Reduce home loans

1.77%

Source: RateCity.com.au. Note: Rates apply to homeowner paying principal and interest, certain LVR and location restrictions apply.

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