Westpac rolls out second round of rate hikes this month

By Gerv Tacadena

Big banks and non-major lenders continue to increase their fixed rates over the past week, with Westpac commencing its second round of hikes in the month.

Big banks and non-major lenders continue to increase their fixed rates over the past week, with Westpac commencing its second round of hikes in the month.

In a recent report in Your Investment Property, WLTH head of lending Catherine Mapusua said borrowers should expect for further increases in mortgage rates as the economy rebounds.

“Since lifting lockdowns in some of our largest cities, we have seen a pickup in core inflation, giving the RBA confidence to strive towards economic recovery,” Ms Mapusua said.

“Over the next few months, lenders will continue to assess borrowers’ capacity to repay their mortgage at a higher interest rate.”

Here are some of the biggest moves by major banks over the past week:

Westpac

Westpac adjusted its fixed-rate offerings for the second time this month, with the recent changes focusing on basic rates for both investors and owner-occupiers.

Increases were introduced across loan terms. Here are some of the biggest changes:

  • Investment Fixed P&I 2 yrs 80% - up by 55bps to 2.84% p.a. (4.84% p.a. comparison rate)
  • Investment Fixed P&I 3 yrs 80% - up by 50bps to 3.19% p.a. (4.75% p.a. comparison rate)
  • Fixed Options P&I 3 yrs 70% - up by 30bps to 2.79% p.a. (4.18% p.a. comparison rate)
  • Fixed Options P&I 2 yrs 95% - up by 25bps to 2.54% p.a. (4.35% p.a. comparison rate)

Westpac’s subsidiaries — Bank of Melbourne, BankSA, and St. George Bank — also rolled out changes to fixed rates.

NAB

NAB made several changes to its line-up, adjusting the owner-occupier and investor fixed rates under the Choice Package and Tailored Fixed mortgage products.

  • Choice Package Tailored Fixed - IO 3 yrs 150k+ – up by 30bps to 3.89% p.a. (4.63% p.a. comparison rate)
  • Choice Package Tailored Fixed - P&I 3 yrs 150k+ – up by 51bps to 2.79% p.a. (4.03% p.a. comparison rate)
  • Inv Tailored Fixed - P&I 2 yrs – up by 40bps to 2.79% p.a. (4.82% p.a. comparison rate)
  • Inv Tailored Fixed - P&I 3 yrs – up by 45bps to 3.09% p.a. (4.71% p.a. comparison rate)
  • Tailored Fixed - P&I 3 yrs – up by 51bps to 2.89% p.a. (2.91% p.a. comparison rate)

ANZ

ANZ was the latest of the big four to change the fixed rates.

The bank made several changes to its fixed rates under its Breakfree Residential and its Basic Investment Fixed products.

  • Breakfree Residential Fixed 3 yrs ≤80% - up by 40bps to 2.79% p.a. (3.37% p.a. comparison rate)
  • Residential Fixed 3 yrs ≤80% - up by 40bps to 2.94% p.a. (4.08% p.a. comparison rate)
  • Breakfree Investment Fixed 3 yrs ≤80% - up by 30bps to 2.99% p.a. (3.85% p.a. comparison rate)
  • Breakfree Investment Fixed 5 yrs ≤80% - up by 25bps to 3.39% (3.92% p.a. comparison rate)
  • Investment Fixed 1 yr 80-90% - up by 20bps to 2.79% p.a. (4.83% p.a. comparison rate)
  • Investment Fixed 2 yrs 80-90% - up by 40bs to 2.89% p.a. (4.66% p.a. comparison rate)

Non-majors joining the trend

Several non-major banks also made some changes to their rate offerings over the past week, with the majority following the fixed-rate hike trend.

Horizon Bank

  • Fixed Rate Home Loan 3 yrs – up by 20bps to 2.49% p.a. (2.91% p.a. comparison rate)
  • Fixed Rate Investment Loan 3 yrs – up by 20bps to 2.74% p.a. (3.16% p.a. comparison rate)

Australian Military Bank

  • Fixed Rate 2 yrs – up 20bps to 2.19% p.a. (2.97% p.a. comparison rate)
  • Fixed Rate 3 yrs – up 30bps to 2.59% p.a. (3.0% p.a. comparison rate)

Bank of Sydney

Bank of Sydney increased its fixed rates under the Expect More Home Loan product by 50bps. Here are some of the new rates under the product:

  • Expect More Residential Fixed 3 yrs P&I – 3.29% p.a. (3.46% p.a. comparison rate)
  • Expect More Residential Fixed 5 yrs P&I – 3.49% (3.59% p.a. comparison rate)
  • Expect More Investment Fixed 3 yrs P&I – 3.65% p.a. (3.95% p.a. comparison rate)
  • Expect More Investment Fixed 5 yrs P&I – 3.85% p.a. (4.05% p.a. comparison rate)

Athena Home Loans

  • Investor Fixed P&I 3 yrs 70-80% - up by 40bps to 3.39% p.a. (2.68% p.a. comparison rate)
  • Investor Fixed P&I 2 yrs ≤60% - up by 40bps to 3.19% p.a. (2.53% p.a. comparison rate)
  • Fixed IO 2 yrs ≤60% - up by 65bps to 3.64% p.a. (2.33% p.a. comparison rate)
  • Fixed P&I 2 yrs 70-80% - up by 40bps to 2.99% p.a. (2.21% p.a. comparison rate)

Bank Australia

  • Investment Basic P&I Fixed 3 yrs <80% - up by 15bps to 2.55% p.a. (2.50% p.a. comparison rate)
  • Investment Premium Package P&I Fixed 3 yrs <80% - up by 15bps to 2.55% p.a. (3.14% p.a. comparison rate)
  • Premium Package Fixed 3 yrs <70% - up by 10bps to 2.1% p.a. (2.91% p.a. comparison rate)
  • Basic Fixed 3 yrs <80% - up by 10bps to 2.3% p.a. (2.49% p.a. comparison rate)

ING

ING is one of the few lenders that slashed their variable rates over the past week.

  • Inv Mortgage Simplifier IO 500k+ - down by 20bps to 2.69% p.a. (2.71% p.a. comparison rate)
  • Inv Mortgage Simplifier PI 150-499k – down 10bps to 2.29% p.a. (2.32% p.a. comparison rate)
  • Mortgage Simplifier PI 500-999k 80% - down by 25bps to 1.99% p.a. (2.02% p.a. comparison rate)
  • Investment Fixed IO 5 yrs – up 45bps to 3.39% p.a. (4.62% p.a. comparison rate)
  • Investment Fixed P&I 3 yrs – up 35bps to 2.69% p.a. (4.25% p.a. comparison rate)

Adelaide Bank

  • SmartFix P&I 3 yrs Special Offer – up by 10bps to 2.4% p.a. (2.93% p.a. comparison rate)
  • SmartFix P&I 5 yrs – up by 11 bps to 3.19% p.a. (3.18% p.a. comparison rate)
  • SmartSaver Fixed P&I 3 yrs Special Offer – up 10bps to 2.39% p.a. (2.73% p.a. comparison rate)
  • SmartSaver Fixed P&I 5 yrs – up 11bps to 3.19% p.a. (2.99% p.a. comparison rate)

BOQ

  • Residential Fixed 3 yrs Discount Rate <80% - up by 50bps to 2.79% p.a. (3.18% p.a. comparison rate)
  • Investment Fixed P&I 3 yrs Discount Rate <80% - up 30bps to 2.89% p.a. (3.34% p.a. comparison rate)
  • Investment Clear Path Variable Home Loan P&I Special Offer ≤80% - down by 20bps to 2.69% p.a. (2.84% p.a. comparison rate)
  • Investment Economy P&I Special Offer 70-80% - down by 30bps to 2.44% p.a. (2.61% p.a. comparison rate)

Bendigo Bank

  • Complete Home Loan Fixed P&I 2 yrs – up by 20bps to 2.19% p.a. (2.61% p.a. comparison rate)
  • Complete Home Loan Fixed P&I 3 yrs – up by 20bps to 2.54% p.a. (2.68% p.a. comparison rate)
  • Complete Home Loan Fixed P&I 4 yrs – up by 10bps to 2.84% p.a. (2.79% p.a. comparison rate)
  • Complete Home Loan Fixed P&I 5 yrs – up by 10bps to 3.09% p.a. (2.92% p.a. comparison rate)

TicToc Home Loans

  • Live-in Fixed P&I 3 yrs – up by 20bps to 2.34% p.a. (2.01% p.a. comparison rate)
  • Live-in Fixed P&I 5 yrs – up by 30bps to 3.09% p.a. (2.37% p.a. comparison rate)

Aussie

  • Edge P&I Fixed 4 yrs – up by 26bps to 2.89% p.a. (2.78% p.a. comparison rate)
  • Edge P&I Fixed 5 yrs – up by 21bps to 3.14% p.a. (2.89% p.a. comparison rate)

AMP Bank

  • Basic Fixed P&I 3 yrs – up by 45bps to 2.79% p.a. (2.89% p.a. comparison rate)
  • Basic Fixed P&I 5 yrs – up by 40bps to 3.19% p.a. (3.04% p.a. comparison rate)
  • Investment Basic Fixed P&I 2 yrs – up by 39bps to 2.6% p.a. (3.18% p.a. comparison rate)
  • Investment Basic Fixed P&I 3 yrs – up by 10bps to 2.99% p.a. (3.23% p.a. comparison rate)

Photo by Ankush Minda on Unsplash

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