Fixed mortgage rates starting with a ‘5’ or ‘6’ is the new norm from the big four banks
Australia’s second largest home loan lender, Westpac, today raised fixed rates by up to 0.60 percentage points for owner-occupiers and investors on all fixed rate terms.
Although the majority of Westpac’s 1- to 5-year owner-occupier rates paying principal and interest now start with a “5,” the rates are still lower than those of its four major banking competitors.
Westpac also today raised its variable rates for new and existing customers by 0.50 percentage point after the RBA hiked earlier this month.
Westpac FIXED CHANGES: Owner occupier principal and interest rate changes
– Contact us for interest only and investor changes
| expression | Old Tariff | New tariff | change |
| 1 year fixed | 4.09% | 4.59% | +0.50% |
| 2 years fixed | 4.79% | 5.39% | +0.60% |
| 3 years fixed | 5.19% | 5.69% | +0.50% |
| 4 years fixed | 5.29% | 5.89% | +0.60% |
| 5 years fixed | 5.39% | 5.99% | +0.60% |
Note: Rates apply to customers with a bundled rate plan with a 70% LTV or less.
Westpac lowest rates – 1 year ago compared to today
| expression | 1 year ago | today | change |
| 1 year fixed | 1.99% | 4.59% | 2.60% |
| 2 years fixed | 1.89% | 5.39% | 3.50% |
| 3 years fixed | 1.98% | 5.69% | 3.71% |
| 4 years fixed | 2.19% | 5.89% | 3.70% |
| 5 years fixed | 2.49% | 5.99% | 3.50% |
| lowest variable | 2.19% for 2 years
then 2.69% |
3.14% for 2 years
then 3.54% |
0.95% at the introductory price,
0.85% at the current rate |
Source: RateCity.com.au. Rates apply to owner-occupiers paying principal and interest with an LVR of 70% or less.
RateCity.com.au Research Director Sally Tindall said: “Fixed mortgage rates starting with a ‘5’ or ‘6’ are now the new norm of the big four.”
“Westpac is the latest major bank to hike fixed rates significantly as funding costs rise. Those ultra-low fixed rates below 2 percent are now a distant memory,” she said.
“It’s hard to believe that just a year ago Westpac was offering a 2-year fixed rate of 1.89 percent for owner-occupiers. Now that rate has almost tripled to 5.39 percent.
“Floating rates are also on the rise, with the RBA raising interest rates by 1.25 percentage points over the past three months and warning of more rate hikes,” she said.
In a speech, RBA Governor Dr. Philip Lowe today: “We are going through a process of steadily increasing interest rates and there will be more to come. We need to move away from these very low interest rates that we had during the emergency.”
“If the RBA raises the cash interest rate by an additional 2 percentage points this year, as forecast by ANZ, the average existing variable rate customer would have an estimated interest rate of 6.11 per cent by Christmas. However, there are no guarantees that the cash rate will get as high or stay as high as some economists announce a cash rate cut later next year.
“The key for adjustable rate customers is to regularly compare their interest rate to what is being offered to new customers. If your interest rate isn’t competitive, pick up the phone and haggle with your bank or consider refinancing with a lender who’s willing to give you a decent interest rate,” she said.
Lowest interest rates from the Big Four banks for owner occupiers paying principal and interest
(Note: only interest and investor rates are higher)
| fare type | CBA | Westpac | SNAP | NO |
| 1 year fixed | 4.99% | 4.59% | 4.69% | 4.69% |
| 2 years fixed | 5.79% | 5.39% | 5.59% | 5.49% |
| 3 years fixed | 6.39% | 5.69% | 5.79% | 5.89% |
| 4 years fixed | 6.59% | 5.89% | 6.19% | 5.99% |
| 5 years fixed | 6.69% | 5.99% | 6.29% | 6.09% |
| lowest variable | 3.29% | 3.14% for 2 years, then 3.54% | 3.44% | 3.29% |
Source: RateCity.com.au. Prices are for owner occupiers paying principal and interest. Some LVR requirements apply.
Lowest home loan rates on RateCity.com.au
| fare type | lender | Advertised price |
| 1 year fixed | Beyond the bank | 3.49% |
| 2 years fixed | The Capricorn | 3.39% |
| 3 years fixed | Beyond the bank | 4.79% |
| 4 years fixed | Beyond the bank | 5.19% |
| 5 years fixed | Beyond the bank | 5.19% |
| lowest variable | Credit Union SA | 2.84% |
Source: RateCity.com.au. Prices are for owner occupiers paying principal and interest. Some LVR requirements apply.