Major banks announce rate changes

Effective Wednesday, 7 March, Westpac and its subsidiaries will make changes in their Fixed Option Home and Investment Property Loan interest rates.

The group will also be removing the limited time new lending special discount on the two and three-year Fixed Option Home and Investment Property Loan for both principal and interest and interest-only repayments under the Premier Advantage Package (PAP).

Westpac’s one, four and five-year owner-occupied (P&I) fixed rates will increase by 10 basis points, while its two-year fixed rate will increase by 1 basis point. There is no change in its three-year fixed rate.

Owner-occupied fixed rates (interest-only) will increase by 25 basis points on four and five-year fixed rates, while its two-year rate will fall by 5 basis points and its three-year rate by 4 basis points. There is no change in two-year rates.

Investment property fixed rates (P&I) will increase by 30 basis points on one, three, four and five-year rates. There is no change in two-year rates.

Interest-only fixed rates for investment property will increase by 10 basis points on four and five-year rates but fall by 14 basis points and 5 basis points for two and three-year rates, respectively. There is no change in one-year rates.

Meanwhile, CBA has also announced changes in its fixed rate mortgages. The bank’s owner-occupied (P&I) one and two-year fixed rate home loans will decrease.

The owner-occupied (P&I) five-year and interest-only (IO) one, two, and five-year fixed rate home loans will increase. Investment P&I and IO one, two, three and four-year fixed rate home loans will decrease.