Westpac continues to raise rates among big four banks

Westpac on Wednesday raised interest rates on fixed home loans by 30 basis points.

The rise in fixed rates continues as many lenders continue to increase fixed interest rates while reducing variable interest rates on mortgages.

Notable increases include:

  • 3-year P&I Fixed Options 70%: Increase of 30 basis points to 3.09% (comparison rate 4.26%)
  • Fixed options P&I 5 years 70%: Increase of 30 basis points to 3.59% (comparison rate 4.26%)
  • Fixed 3-year P&I investment 70%: 25 basis points increase to 3.34% (comparison rate 4.72%)

These increased rates apply to new loans with a maximum loan-to-value ratio of 70% for homeowners.

At the start of the year, the three-year fixed rate for owner-occupiers was 2.29% per annum (comparison rate of 4.12% per annum *).

Westpac isn’t the only bank to raise interest rates recently, with Suncorp and ME Bank raising fixed interest rates up to 62 basis points last month.

The Big Four also tend to move in unison with NAB, ANZ and CommBank making similar changes just over a week ago.

These also follow several rate hikes from September to November.


Buying a home or looking to refinance? The table below presents home loans with some of the lowest interest rates on the market for homeowners.


Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details

Smart Booster real estate loan at variable discount rate – 2 years (LVR
  • Fast turnaround times, can meet a 30 day settlement
  • For purchase and refinancing, minimum deposit of 20%
  • No ongoing or monthly fees, add compensation for 0.10%

Variable More details

Low rate home loan – Premium (principal and interest) (owner occupied) (LVR
  • No upfront or ongoing fees
  • 100% clearing account
  • Additional refunds + reprint services

Fixed More details

1-year fixed real estate loan (capital and interest) (LVR
  • Simple digital application process
  • Market-leading app to help you pay off your loan sooner
  • No ongoing charges

Variable More details

Nano Home Loans Variable Owner Busy, Principal and Interest (Refinancing Only)

  • Refinancing only. Fast online application
  • No Nano fees. 100% free sub-account clearing
  • Mobile app, Visa debit card and instant payments

Image by Mathias Jensen via Unsplash

The entire market was not taken into account in the selection of the above products. On the contrary, a small part of the market has been envisaged. Products from some vendors may not be available in all states. To be considered, the product and the price must be clearly published on the website of the supplier of the product. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, the Savings Media Group is associated with the Firstmac Group. To learn more about how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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