Westpac increases its fixed rates for the 3rd time in a month

Australia’s second-largest bank, Westpac, raised its fixed rates for the third time in a month.

Today’s hikes are affecting both homeowner and investor rates across the Westpac group, including St George, Bank of Melbourne and BankSA.

Like the CBA and ANZ, Westpac now has no advertised fixed mortgage rates below 2%. Only the NAB has a fixed rate starting with a “1”.

Today’s Westpac Rides for Homeowners Paying Principal and Interest

Rate type Old lowest rate New lowest rate Switch Monthly repayments – difference, loan of $ 500,000
1 year fixed

1.99%

2.24%

+ 0.25%

$ 63

2 years fixed

1.99%

2.24%

+ 0.25%

$ 63

3 years fixed

2.29%

2.59%

+ 0.30%

$ 78

4 years fixed

2.69%

2.89%

+ 0.20%

$ 53

5 years fixed

2.99%

3.09%

+ 0.10%

$ 27

Note: The above rates are for an LVR of less than 70%, for homeowners paying principal and interest on a flat rate with an annual fee of $ 395. Monthly repayments are based on a $ 500,000 30-year fixed rate loan.

Previous increases in Westpac homeowner fixed rates this month:

Fixed mortgage rates are rising rapidly

Analysis of the RateCity.com.au database shows that banks are rushing to raise fixed rates.

In the past month, 16 lenders have raised fixed rates twice, including CBA, NAB and ANZ, while Westpac is the first bank to raise fixed rates three times.

Lenders who have changed at least one rate in the past month (October 17 to November 16, 2021)

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

14

24

2 years fixed

5

47

3 years fixed

1

52

4 years fixed

2

38

5 years fixed

3

47

Variable

38

4

Note: A number of lenders have changed the rates for several home loans.

RateCity.com.au’s research director, Sally Tindall, said: “The banks have stepped on the accelerator of fixed rate hikes. They come in droves and quickly and they usually get bigger with each hike.

“At first, fixed rate hikes were isolated from longer-term rates, but now banks are increasing at all levels at an extraordinary rate.

“In the past month, 16 lenders have increased their fixed rates twice, including the big four banks. Westpac has now increased its fixed rates three times in a month.

“These fixed rate hikes are more than speculation that the spot rate may rise sooner than expected. The cost of wholesale funding is increasing and the banks have decided that it is not viable to keep fixed rates at ultra-low levels.

“Customers waiting in line to settle their fixed rate loans will rightfully be frustrated by these rapid rate hikes, unless they have frozen their rates.

“In this environment where banks are increasing several times a month, customers would do well to consider paying a rate freeze fee, especially when some banks are struggling to process loans quickly.

“While there are still 95 fixed rates below 2%, the list is rapidly shrinking. Around the same time next year, there may be virtually no fixed rates starting with a “1,” she said.

The Big Four Banks’ Lowest Rates for Homeowner Home Loans

ABC Westpac NAB ANZ
1 year fixed

2.34%

2.24%

1.99%

2.29%

2 years fixed

2.34%

2.24%

2.34%

2.39%

3 years fixed

2.69%

2.59%

2.79%

2.79%

4 years fixed

2.89%

2.89%

2.89%

2.99%

5 years fixed

3.09%

3.09%

3.09%

3.19%

Variable

2.29%

1.99% for 2 years then 2.49%

2.29%

2.49%

Source: RateCity.com.au. Note Rates are for homeowners paying principal and interest, LVR requirements apply for some loans.

Lowest rates from RateCity.com.au database

Lender Announced price
1 year fixed Big Bank, Bank of Us

1.59%

2 years fixed Big Bank

1.59%

3 years fixed MOVE Bank

1.89%

4 years fixed BankVic, Southern Cross Credit Union, Credit Union SA, Hume Bank, Regional Australia Bank

2.39%

5 years fixed Bank Australia

2.40%

Variable Reduce home loans

1.77%

Note Rates are for homeowners paying principal and interest, LVR and zip code requirements apply for some loans.


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