Westpac raises fixed rates on home loans and lowers variable rates

For the fourth time this year, Westpac has raised fixed home loan rates for homeowners and investors by up to 30 basis points.

Following ANZ’s decision to cut fixed and variable rates earlier this week, Westpac’s increase applies to Principal and Interest (P&I) and Interest Only (IO) options on Fixed products. , Investment Fixed and Premier Advantage.

Across Westpac’s home loan portfolio, some of these changes included:

  • 70% 3-year P&I fixed options: Increase of 30 basis points to 4.04% per year (comparative rate of 4.58% per year*)
  • Fixed options P&I 4 years 95%: Increase of 30 basis points to 4.29% per year (comparative rate of 4.62% per year*)
  • Fixed Investment IO 3 Years 70%: Increase of 30 basis points to 4.39% per year (comparative rate of 5.52% per year*)
  • Fixed P&I investment 4 years 80%: Increase of 30 basis points to 4.49% per annum (comparative rate of 5.05% per annum*)

Going back to November, Westpac’s three-year Premier Advantage P&I 150k+ home loan with a loan-to-value ratio (LVR) of 70% was 2.29% per annum (comparable rate of 3.38% per annum) *).

Four months later, that same home loan increased by 145 basis points to a fixed rate of 3.74% per annum (comparative rate of 3.74% per annum).

On a $600,000 home loan, waiting an additional four months from November to March could result in buyers paying around $469 in additional interest per month over a 30-year loan term.

Westpac’s rate lock feature applies for 90 days and costs 0.10% of the loan amount charged – for example $600 on a $600,000 home loan.

See also: What is rate lock and is it worth it?

Westpac makes cuts on some variable products

Westpac has removed three “Flexi First” variable rate offers on P&I and IO loans for homeowners and investors.

These changes include:

  • Special offer Flexi First Option P&I 95%: Decrease of 10 basis points to 2.19% per year (comparative rate of 2.20% per year*)
  • Special investment offer Flexi First Option IO 70%: Decrease of 20 basis points to 2.79% per year (comparative rate of 2.80% per year*)
  • Special investment offer Flexi First Option IO 80%: Decrease of 20 basis points to 2.89% per year (comparative rate of 2.90% per year*)

Read more: Is it too late to settle your mortgage?


Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.



Lender

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

Variable More details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable – 2 years (LVR
  • Fast turnaround times, can meet 30 day settlement
  • For purchase and refinancing, down payment min 20%
  • No ongoing or monthly fees, add 0.10% compensation

Variable More details
100% COMPLETE CLEARING ACCOUNTNO APPLICATION FEES OR ON-GOING FEES

Low Rate Home Loan – Premium (Principal & Interest) (Owner Occupant) (LVR
  • No upfront or ongoing fees
  • 100% cleared account
  • Additional refunds + withdrawal services

Variable More details
ZERO APPLICATION FEESCOMPENSATION WITHOUT COST

Homeowner Accelerates – Celebrate (LVR
  • We lower your rate based on the amount you have repaid on your loan
  • Automatic Fare Matching
  • No upfront or ongoing fees

Variable More details
AN EASY DIGITAL APPLICATION

Careful variable real estate loan (capital and interest) (LVR

  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster

Careful variable real estate loan (capital and interest) (LVR
  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster

Variable More details
REFINANCING IN MINUTES, NOT WEEKS

Variable Owner occupied, principal and interest (refinance only) (LVR
  • No application or ongoing fees.
  • 100% free clearing sub-account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Variable More details
BENEFIT FROM A REDUCED GREEN RATE*

Green real estate loan (capital and interest)

  • Quick turnaround, can meet 30 day settlement
  • Save Thousands of Dollars and Make an Eco-Friendly Choice on Your Loan for Homes Under 12 Months




Disclaimer

The entire market has not been taken into account in the selection of the products above. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. 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, Savings Media Group is associated with Firstmac Group. To learn 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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Jacob Cocciolone


Jacob Cocciolone joined the savings team in 2021 as a financial journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include fintech, investing, real estate and automotive.

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