Fact checked
The big four banks continue to take turns increasing their fixed rates, with ANZ and Westpac being the latest to roll out some changes.
These increases followed their revision of their projection of the likely rate hike by the Reserve Bank of Australia, which is now expected to come by June this year.
ANZ raised its fixed rates for both investors and owner-occupiers by as much as 60 bps while Westpac rolled out hikes of up to 50 bps.
The biggest hikes by Westpac are for fixed-rate loans with interest-only repayments.
Interestingly, Westpac made cuts to its one-year fixed rate for both investors and owner-occupiers, with the latter getting a more prominent decrease by 45 bps.
Here are some of the biggest changes in ANZ and Westpac’s fixed-rate offerings:
ANZ |
||
|
ANZ Loan Product |
Change |
New Rate |
|
Investment Fixed 2 yrs ≤80% |
+60 bps |
4.19% p.a. |
|
Residential Fixed 2 yrs ≤80% |
+60 bps |
3.99% p.a. (3.17% p.a. comparison rate) |
|
Investment Fixed 3 yrs ≤80% |
+50 bps |
4.59% p.a. (3.85% p.a. comparison rate) |
|
Residential Fixed 3 yrs ≤80% |
+50 bps |
4.39% p.a. (3.35% p.a. comparison rate) |
|
Investment Fixed 5 yrs 80-90% |
+50 bps |
5.14% p.a. (4.35% p.a. comparison rate) |
|
Residential Fixed 5 yrs 80-90% |
+40 bps |
4.94% p.a. (3.91% p.a. comparison rate) |
Westpac |
||
|
Westpac Loan Product |
Change |
New Rate |
|
Premier Advantage Investment Fixed P&I 1 yr 70% |
-40 bps |
2.99% p.a. |
|
Fixed Options P&I 1 yr 95% |
-45 bps |
3.09% p.a. (4.58% p.a. comparison rate) |
|
Premier Advantage Investment Fixed IO 2 yrs 70% |
+50 bps |
4.19% p.a. (4.43% p.a. comparison rate) |
|
Premier Advantage Fixed Options IO 3 yrs 80% 150k+ |
+30 bps |
4.89% p.a. (4.54% p.a. comparison rate) |
|
Premier Advantage Fixed Options P&I 2 yrs 95% 150k+ |
+20 bps |
3.79% p.a. (3.79% p.a. comparison rate) |
|
Fixed Options P&I 3 yrs 70% |
+15 bps |
4.49% p.a. (4.79% p.a. comparison rate) |
Borrowers should not be discouraged
WLTH national lending manager Chad Hoy Poy said fixed rates have been increasing dramatically among lenders, while variable rates remain low — the latter, however, might not last.
“Current fixed rates have expected rate rises built in and borrowers should be aware variable rates will change over time,” he said.
Mr Hoy Poy said despite these increases, homebuyers should not be discouraged.
“When applying for a home loan, lenders have a servicing buffer to help reduce risk in regard to rate increases and see if you have enough of a buffer to handle it without extra financial stress,” he said.
“Borrowers should always ensure they can service increased loan repayments over the coming years.”
—
Photo by @benwhitephotography on Unsplash
Collections: Mortgage News Interest Rates
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