Both owner occupier and investment loans at Westpac saw fixed rates slashed.

This is the first significant change to home loan rates from Westpac since November 2023, when it hiked both fixed and variable rates after that month's cash rate hike.

It follows Macquarie cutting fixed rates by up to 76 bps on 13 August for both owner occupiers and investors, as well as NAB doing similar in July.

While the overwhelming majority of borrowers are still choosing variable rates, three of the five biggest mortgage lenders in Australia have now cut fixed rates, one after another.

It could simply be a case of the big players keeping pace with each other, but it also suggests the major banks remain unconvinced by RBA boss Michele Bullock's insistence further rate hikes are a genuine possibility.

A fixed rate comeback?

Since mid 2021 when nearly 50% of new mortgages were fixed, borrowers started to opt for variable rates - since August '23 less than 5% of new loans written (including refinances) have had fixed rates.

April this year saw fixed rates on just $590 million of over $51 billion worth of new home loans written, only just over 1%.

However, there has been a slight uptick since, with fixed loans taking 2.6% of the June loans per the ABS.

This remains low, but it's worth also pointing out that from May to June, the value of fixed loans increased despite the overall total going down.

Read more: When should you fix your home loan rate?

Westpac rate changes

These are the new fixed rates for owner occupiers without the Premier Advantage package.

There is a 0.10% discount on these rates for LVRs up to 70%:

Fixed rate period Interest rate change (Comparison rate*)
One year Down 50 bps to 6.39% p.a. (8.86% p.a.*)
Two years Down 60 bps to 6.19% p.a. (8.39% p.a.*)
Three years Down 70 bps to 6.19% p.a. (8.16% p.a.*)
Four years Down 70 bps to 6.19% p.a. (7.94% p.a.*)
Five years Down 80 bps to 6.19% p.a. (7.75% p.a.*)

And for investors:

Fixed rate period Interest rate change (Comparison rate*)
One year Down 45 bps to 6.54% p.a. (9.18% p.a.*)
Two years Down 40 bps to 6.39% p.a. (8.85% p.a.*)
Three years Down 60 bps to 6.39% p.a. (8.58% p.a.*)
Four years Down 60 bps to 6.39% p.a. (8.34% p.a.*)
Five years Down 70 bps to 6.39% p.a. (8.13% p.a.*)

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Picture from Westpac



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