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

Investor fixed principal-and-interest rates with two-year terms will grow by 31 basis points to 4.39%, while three-year terms will see a decline of five basis points to 4.44%. Five- and six-year terms will both drop 10 basis points to 4.69%.

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

Owner-occupied fixed principal-and-interest rates will see a hike of 11 basis points for two-year terms, bringing the rate to 4.19% per annum. Three-year terms will see declines of 10 basis points to 4.19%, while both four- and five-year terms will see rates decline by 20 basis points to 4.39%.

Owner-occupied fixed interest-only rates with one- and two-year terms will see a hike of 13 basis points to 4.79%, while three-year terms will hike by 13 basis points to 4.89%. Four- and five-year terms will increase by 0.13% to 5.19%.

Westpac’s subsidiaries hike their interest rates

Westpac’s subsidiaries – St. George, Bank of Melbourne, and BankSA – will also be modifying rates on new fixed-rate home loan products for both investors and owner-occupiers.

For these subsidiaries, owner-occupier fixed-rates will be 4.19% for one-year loans, going up to 4.44% for five-year loans.  

Interest-only lending will range from 4.74% (for one-year loans) to 5.14% (for five-year loans).

Brokers are being advised that if customers have already rate-locked their fixed rate, and if the rate locked is higher than the new rate, than the customers will get the new lower carded rate applicable to their loan on the date the loan settles (provided there is no further fixed rate modification).

If the rate locked in is lower than the new rate, then these customers will not be affected.