Westpac increases fixed rate home loans for the second time in 2022

Westpac increased the rate on a number of fixed-term home loans for the second time this year.

Australia’s second-biggest bank today raised rates on its one-, two-, three-, four- and five-year fixed-term loans, 20 days after raising rates on the same products on January 21.

For homeowners, the rate for four- and five-year fixed-term loans will be increased by 0.20%, the rate for two-year fixed-term loans will be increased by 0.15%, and the rate for fixed-term loans three and one year term loans will be increased by 0.10%.

This is the second time in as many months that Westpac has raised rates on its fixed-term home loan products. (AP)

RateCity.com.au analysis shows that the maximum repayment difference for a homeowner paying principal and interest on a $500,000 loan over 30 years will be around $57.

Westpac’s increase comes two days after ANZ raised the fixed rate on a number of its products, completing a suite of “big four” banks to pull out of ultra-low fixed rate products.

RateCity.com.au research director Sally Tindall said the big four banks’ rate hikes 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.

“For the past two years, the big four have fought to offer competitive fixed rates. Now they have completely turned their backs on the fight.”

Buyers looking to secure a fixed rate term are advised to do their homework as soon as possible. (Peter Rae)

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