No fixed rates below 5% remain at major lender after latest increases
Westpac has increased several of its fixed home loan rates by up to 0.35 percentage points, resulting in the removal of all fixed rates below 5% offered by the bank.
The lender’s lowest fixed rate now stands at 5.24% for a two-year term, available exclusively to borrowers with a minimum 30% deposit. The same rate applies to Westpac’s lowest variable home loan, though this is only accessible to customers applying online.
Despite the rate adjustments, Westpac continues to offer the lowest one-, four-, and five-year fixed rates among the major banks.
Commonwealth (CBA) holds the lowest two-year fixed rate at 4.99%, while National Australia Bank (NAB) leads with the lowest three-year fixed rate among the big four at 5.29%. According to analysis by Canstar.com.au, 43 lenders in the market currently have at least one fixed rate below 5%.
“Just weeks ago, Westpac was offering one of the sharpest two-year fixed rates in the market at 4.89%; however, the bank has now had to reassess its pricing,” said Laine Gordon (pictured right), spokesperson at Canstar.com.au. “As a result of these changes, Westpac no longer has a home loan rate starting with a ‘4’.
Gordon recommended "doing the maths first" before fixing.
"Fixed rates can offer peace of mind, but they also come with trade-offs such as reduced flexibility and potentially higher costs if the cash rate does fall further. For borrowers chasing certainty, fixing part of your loan can be a way to hedge your bets. It lets you lock in a portion of your debt while keeping some flexibility to make extra repayments or use an offset account on the variable portion.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
