Major bank raises investor rates by 31 basis points

A big four bank has announced changes to interest rates on both principal and interest and interest-only loans.

Westpac has introduced changes to its fixed rates, effective 1 August 2017.

Investor fixed P&I rates with two-year terms will grow by 31 basis points to 4.39 per cent, while three-year terms will see a fall of 5 basis points to 4.44 per cent. Five and six-year terms will both fall 10 basis points to 4.69 per cent.

Investor fixed IO rates with one to five year terms will all see hikes. One and two-year terms will grow 13 basis points to 4.99 per cent, while three-year terms will also increase by 13 basis points to 5.09 per cent. Four and five-year terms will see rate increases of 23 basis points to 5.49 per cent.

Owner occupied fixed principal and interest (P&I) rates will see a hike of 11 basis points for two year terms, bringing the rate to 4.19 per cent per annum (p.a.). Three year terms will conversely see falls of 10 basis points to 4.19 per cent, while both four and five-year terms will see rates fall by 20 basis points to 4.39 per cent.

Owner occupied fixed interest-only (IO) rates in one and two-year terms will see a hike of 13 basis points to 4.79 per cent, while three-year terms will also grow 13 basis points to 4.89 per cent. Four and five-year terms will increase by 0.13 per cent to 5.19 per cent.

[Related: Turnbull warns on rate hikes, debt risks]

 

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Lucy Dean

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