Westpac raise interest-only fixed rates for owner occupiers and investors
Westpac has raised the fixed rates attached to nearly all of its interest only packaged loans.
The bank lifted fixed rates by up to 30 basis points, with interest only rates for owner occupiers now on par with the rates available to investors.
Owner occupiers on interest-only fixed loans will be the hardest hit — iincreasing rates by 30 basis points across 1, 2, 3, and 5 year fixed deals.
Westpac’s sister banks St.George, BankSA and Bank of Melbourne also joined the rate hike with increases of up to 25 basis points.
A small number of four year fixed rates were slashed however, with 25bp being the most generous cut among them.
This news comes after CommBank hit investors across 14 of its mortgage products last Friday, with hikes of up to 0.50 basis points.
Last month Westpac increased its variable home loans interest rates for:
- Owner occupiers customers by 0.03% to 5.32% per annum with principal and interest repayments (comparison rate 5.46% per annum*)
- Owner occupiers customers by 0.08% to 5.49% per annum with interest only repayments (comparison rate 5.63% per annum*)
- Residential investment property loan rate customers by 0.23% to 5.79% per annum with principal and interest repayments (comparison rate 5.93% per annum*)
- Residential investment property loan rate customers by 0.28% to 5.96% per annum with interest only repayments (comparison rate 6.01% per annum*)
Comparison site finder.com.au found the likely average home loans rates (below).
They compared the cheapest home loan rates available and found UBank have the lowest interest rates at 3.74 percent.
Mozo have too compared the best fixed rate home loans, suggesting CUA offer the lowest interest rates at 3.84 percent.
In a ratecity.com.au's 'Todays top loans section', Beyond Bank offers a rate of 3.88 percent.