Westpac hikes rates by up to 117 basis points

A raft of rate changes have come into effect for Westpac's owner-occupier, investor and SMSF loan products.

Westpac wrote to mortgage brokers on Friday morning informing them of the fixed rate changes, which came into effective immediately.

“Westpac constantly reviews its home lending rates to take into account changing market conditions,” the group said.

“As such we are making changes to some interest rates on fixed rate home and investment loan products.”

SMSF loans saw the biggest changes, with investment property fixed rates (interest only) increasing 1.17 per cent for two-year, three-year, and six through to 10-year fixed rates. Four and five-year fixed rates in this category have increased 115 basis points.

SMSF investment property fixed rates (principal and interest) have increased by up to 100 basis points.

Meanwhile, investment property fixed rates (interest only) have increased by 17 basis points on two-year fixed rates and above. One-year fixed rates for this product have been reduced 30 basis points.

Westpac has announced a 47 basis-point reduction of its one-year investment property fixed rates (principal and interest) with no change to fixed rates two years and up.

Owner-occupier fixed rates (principal and interest) for one year have been slashed 40 basis points. The same product for interest-only repayments has been reduced 23 basis points, while two-year fixed rates and beyond have risen 17 basis points.

“These changes are in response to increased funding costs,” a Westpac spokesperson said.

“In this low interest rate environment, we are offering lower variable and fixed interest rates to customers who make principal and interest repayments to encourage customers to pay down their debt and own their home faster.”

Full details of Westpac’s fixed rate changes can be found below:

 

SMSF - Investment Property Fixed Rates (Interest Only Repayments)

 

Current Rate
(Stand Alone)
% p.a.

Interest Rate

Change (%)

New Rate
(Stand Alone)
% p.a.

New Comparison Rate^
(Stand Alone)
% p.a.

1 Year

5.21%

0.95%

6.16%

6.09%

2 Year

4.99%

1.17%

6.16%

6.11%

3 Year

5.09%

1.17%

6.26%

6.16%

4 Year

5.41%

1.15%

6.56%

6.29%

5 Year

5.41%

1.15%

6.56%

6.34%

6 Year

6.55%

1.17%

7.72%

6.99%

7 Year

7.05%

1.17%

8.22%

7.41%

9 Year

7.05%

1.17%

8.22%

7.66%

10 Year

7.05%

1.17%

8.22%

7.76%

 

SMSF - Investment Property Fixed Rates (Principal and Interest Repayments)

 

Current Rate
(Stand Alone)
% p.a.

Interest Rate

Change (%)

New Rate
(Stand Alone)
% p.a.

New Comparison Rate^
(Stand Alone)
% p.a.

1 Year

5.21%

0.78%

5.99%

6.07%

2 Year

4.99%

1.00%

5.99%

6.08%

3 Year

5.09%

1.00%

6.09%

6.11%

4 Year

5.41%

0.98%

6.39%

6.23%

5 Year

5.41%

0.98%

6.39%

6.26%

6 Year

6.55%

1.00%

7.55%

6.90%

7 Year

7.05%

1.00%

8.05%

7.30%

9 Year

7.05%

1.00%

8.05%

7.53%

10 Year

7.05%

1.00%

8.05%

7.63%

 

Investment Property Fixed Rates (Interest Only Repayments)

 

Current Rate
(Stand Alone)
% p.a.

Interest Rate

Change (%)

New Rate
(Stand Alone)
% p.a.

New Premier Advantage Package** Interest Rate
% p.a.

1 Year

4.86%

-0.30%

4.56%

4.36%

2 Year

4.39%

0.17%

4.56%

4.36%

3 Year

4.49%

0.17%

4.56%

4.46%

4 Year

5.06%

0.17%

5.23%

5.03%

5 Year

4.79%

0.17%

4.56%

4.76%

6 Year

6.20%

0.17%

6.37%

6.17%

7 Year

6.70%

0.17%

6.87%

6.67%

9 Year

6.70%

0.17%

6.87%

6.67%

10 Year

6.70%

0.17%

6.87%

6.67%

 

Investment Property Fixed Rates (Principal and Interest Repayments)

 

Current Fixed Rate
(Stand Alone)
% p.a.

Interest Rate

Change (%)

New Fixed Rate
(Stand Alone)
% p.a.

New Premier Advantage Package** Interest Rate
% p.a.

1 Year

4.86%

-0.47%

4.39%

4.19%

2 Year

4.39%

No change

4.39%

4.19%

3 Year

4.49%

No change

4.49%

4.29%

4 Year

5.06%

No change

5.06%

4.86%

5 Year

4.79%

No change

4.79%

4.59%

6 Year

6.20%

No change

6.20%

6.00%

7 Year

6.70%

No change

6.70%

6.50%

9 Year

6.70%

No change

6.70%

6.50%

10 Year

6.70%

No change

6.70%

6.50%

 

Owner-occupier Fixed Rates (Interest Only Repayments)

 

Current Rate
(Stand Alone)
% p.a.

Interest Rate

Change (%)

New Rate
(Stand Alone)
% p.a.

New Premier Advantage Package** Interest Rate
% p.a.

1 Year

4.59%

-0.23%

4.36%

4.16%

2 Year

4.19%

0.17%

4.36%

4.16%

3 Year

4.29%

0.17%

4.46%

4.26%

4 Year

4.79%

0.17%

4.96%

4.76%

5 Year

4.59%

0.17%

4.76%

4.56%

 

Owner Occupier Fixed Rates (Principal and Interest Repayments)

 

Current Rate
(Stand Alone)
% p.a.

Interest Rate

Change (%)

New Rate
(Stand Alone)
% p.a.

New Premier Advantage Package** Interest Rate
% p.a.

1 Year

4.59%

-0.40%

4.19%

3.99%

2 Year

4.19%

No change

4.19%

3.99%

3 Year

4.29%

No change

4.29%

4.09%

4 Year

4.79%

No change

4.79%

4.59%

5 Year

4.59%

No change

4.59%

4.39%

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