After increasing fixed rates on April 7, Westpac hiked its rates again for a second time in a week. While the majority of the changes from Australia’s second-largest lender were hikes, the bank has also trimmed its one-year fixed rates.
ANZ, meanwhile, has hiked its one- to five-year fixed rates by up to 0.6 percentage points.
RateCity.com.au compiled Westpac fixed rate changes for owner-occupiers:
|
Rate type |
Old rate |
New rate |
Change |
|---|---|---|---|
|
1-yr fixed |
3.24% |
2.79% |
-0.45% |
|
2-yr fixed |
3.49% |
3.69% |
0.2% |
|
3-yr fixed |
4.04% |
4.19% |
0.15% |
|
4-yr fixed |
4.29% |
4.39% |
0.1% |
|
5-yr fixed |
4.59% |
4.59% |
0% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate
RateCity.com.au also compiled ANZ fixed rate changes for owner-occupiers:
|
Rate type |
Old rate |
New rate |
Change |
|---|---|---|---|
|
1-yr fixed |
2.99% |
3.29% |
0.3% |
|
2-yr fixed |
3.39% |
3.99% |
0.6% |
|
3-yr fixed |
3.89% |
4.39% |
0.5% |
|
4-yr fixed |
4.29% |
4.69% |
0.4% |
|
5-yr fixed |
4.49% |
4.89% |
0.4% |
Note: Above rates are for owner-occupiers paying principal and interest.
Sally Tindall, RateCity.com.au research director, said there was no clear end in sight for fixed rate hikes.
“The fixed rate hikes have picked up again in pace and severity,” Tindall said. “[The] increases from ANZ are in some cases up to 0.6 percentage points, while CBA’s hikes… were up to 0.9 percentage points. These aren’t minor adjustments from the big banks, they’re sizable hikes as markets price in higher funding costs.”
Tindall said that with the percentage of new fixed lending nosediving to 28%, these hikes are likely to continue to push more borrowers back to variable rates when their fixed term ends.
“The majority of big four bank rates now start with a four,” she said. “It’s crazy to think that just 12 months ago, Australia’s three largest lenders were offering fixed-rate options starting with a one. NAB is now the only big four bank offering a three-year rate under 4%, however, it’s unlikely to last beyond the month.”
