Westpac lifts fixed mortgage rates after bringing forward RBA rate rise prediction

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For the fifth time in six months Westpac has bumped up a number of fixed home loan rates, this time by between five and 20 basis points.

The rate increases, which came into effect last Friday, were applied across 1-5 year fixed terms on a number of Westpac’s loans including the Fixed Options Home Loan and Fixed Options Home Loan (Premier Advantage Package).

As a result, the lowest fixed rates now offered by Westpac for owner occupier borrowers with an 80% LVR are as follow:

  • 1-year: 2.49% p.a. (3.64% p.a. comparison rate*) with the Fixed Options (Package)
  • 2-year: 2.69% p.a. (3.60% p.a. comparison rate*) with the Fixed Options (Package)
  • 3-year: 3.14% p.a. (3.66% p.a. comparison rate*) with the Fixed Options (Package)
  • 4-year: 3.44% p.a. (3.75% p.a. comparison rate*) with the Fixed Options (Package)
  • 5-year: 3.69% p.a. (3.86% p.a. comparison rate*) with the Fixed Options (Package)

By comparison, the Westpac rates listed above are now between six and 31 basis points higher than the average fixed rate in the Mozo database (owner occupier, 80% LVR) for the equivalent term.

The major banks’ move to increase fixed rates came just a day after Westpac’s chief economist, Bill Evans, brought forward his prediction on the next increase to the official cash rate.

Evans had previously anticipated that the Reserve Bank would be unlikely to lift rates until February 2023, but last week he shifted that prediction forward to the middle of this year.

"Our forecast revisions reflect a much faster lift in inflation and wages growth than envisaged last June," he said. "We now expect one hike of 15 basis points in August to be followed by a further hike of 25 basis points in October."

Westpac is not the only lender to have started pricing in higher interest rates though. In fact, a considerable number of lenders being tracked in the Mozo database have lifted at least one fixed home loan rate in the past three months.

RELATED: Is 2022 your last chance to lock in a low fixed home loan rate?

Thinking about locking in a fixed rate on your loan? Take the hassle out of comparing by viewing a range of different loans all in the one place with our handy fixed rate home loan comparison table, or get started right away with the great offers in the table below.

Compare fixed rate home loans - last updated 21 May 2022

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  • Own Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    2.99% p.a.
    fixed 1 year
    2.50% p.a.

    Competitive variable rates. Free extra repayments and redraws. No Lender’s Mortgage Insurance. Multiple offset accounts available. Fast digital application. 40% deposit required.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    3.59% p.a.
    fixed 1 year
    2.54% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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  • Fixed Rate Home Loan

    Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.07% p.a.
    fixed 1 year
    3.05% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.

    Details
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    Discount Great Rate Home Loan

    LVR<90%, over $150k

    interest rate
    comparison rate
    Initial monthly repayment
    3.09% p.a.
    fixed 1 year
    2.28% p.a.

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2022.

    Details
  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.99% p.a.
    fixed 1 year
    2.76% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2021.

    Details
  • Fixed Rate Loan

    Owner Occupier, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    3.39% p.a.
    fixed 1 year
    2.88% p.a.

    Fixed rate home loan with unlimited extra repayments without penalty and unlimited redraw facility.

    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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