Westpac got in before the January inflation data was released on Wednesday, raising its fixed home loan rates by up to 30 basis points across the board.
It follows Westpac's two hikes to fixed-rate home loans in December after an earlier rise in November.
The latest increase takes the bank's best new fixed rate to 5.79% p.a. (6.26% p.a. comparison rate* ) for owner occupiers with a loan-to-value ratio (LVR) of up to 70% taking out a package loan and fixing for one year.
The best investor rate is 5.94% p.a. (6.45% p.a. comparison rate*) under the same conditions, with both loans requiring borrowers to make principal and interest (P&I) repayments.
Last week, Westpac passed on the 25 basis point increase to its variable home loan rates after the February hike to the RBA cash rate.
Westpac's new fixed home loan rates
Owner occupiers
Here's a selection of Westpac's new home loan rates for owner occupiers making P&I repayments (comparison rates* appear in brackets):
| 1 year | 2 year | 3 year | 4 year | 5 year | |
| Standard |
6.09% p.a. (8.21% p.a.) |
6.19% p.a. (8.01% p.a.) |
6.29% p.a. (7.85% p.a.) |
6.39% p.a. (7.85% p.a.) |
6.39% p.a. (7.58% p.a.) |
| With package and 70% LVR discount |
5.79% p.a. (6.26% p.a.) |
5.89% p.a. (6.27% p.a.) |
5.99% p.a. (6.29% p.a.) |
6.09% p.a. (6.34% p.a.) |
6.09% p.a. (6.35% p.a.) |
The rates above include a 0.10% discount for LVRs up to 70% and a 0.20% discount for those taking out a Premier Package loan (annual fee of $395 applies).
Investors
Here is a selection of investor rates for those making P&I repayments (comparison rates in brackets):
| 1 year | 2 year | 3 year | 4 year | 5 year | |
| Standard |
6.24% p.a. (8.71% p.a.) |
6.34% p.a. (8.45% p.a.) |
6.44% p.a. (8.26% p.a.) |
6.59% p.a. (8.12% p.a.) |
6.59% p.a. (7.96% p.a.) |
| With package and LVR discount |
5.95% p.a. (6.45% p.a.) |
6.04% p.a. (6.45% p.a.) |
6.14% p.a. (6.48% p.a.) |
6.29% p.a. (6.54% p.a.) |
6.29% p.a. (6.55% p.a.) |
The same discounts apply to investor loans.
Investors choosing to make interest-only repayments see rates increase by between 0.05 to 0.25% depending on the term and LVR.
See also : Pros & Cons of an Interest-Only Home Loan
The fixed home loan rate hikes also apply to other brands in the Westpac group: St George Bank, Bank of Melbourne, and BankSA.
What's next for home loan rates?
The case to raise the Reserve Bank cash rate gained momentum on Wednesday after the release of the January Consumer Price Index data.
The annual inflation rate came in at 3.8% for the 12 months to January, holding steady with the previous month.
However, underlying inflation, the RBA's preferred measure, rose to 3.4%, up from 3.3% the previous month.
Both figures were above market expectations, firming the odds of another cash rate increase, possibly in May according to many big bank economists.
Lenders have been steadily raising their fixed home loan rates since late last year when it became apparent inflation was once again in play in the Australian economy.
The next RBA monetary policy board meeting is scheduled for 16-17 March.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.54% p.a. | 5.58% p.a. | $2,852 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.44% p.a. | 5.35% p.a. | $2,820 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
5.64% p.a. | 5.68% p.a. | $2,883 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Kiwiteen123 on Wikimedia Commons
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