Westpac’s increase applies to principal and interest (P&I) and interest-only (IO) loans across Fixed, Investment Fixed and Premier Advantage products.
Key changes across Westpac’s home loan portfolio for owner-occupiers, included:
- Fixed Options P&I 5 Years 70%: 30 basis point increase to 4.89% p.a. (4.85% p.a. comparison rate*)
- Fixed Options IO 5 Years 70%: 30 basis point increase to 5.09% p.a. (5.27% p.a. comparison rate*)
- Premier Advantage Fixed Options P&I 5 Years 95% 150k+: 30 basis point increase to 4.69% p.a. (4.27% p.a. comparison rate*)
- Premier Advantage Fixed Options IO 5 Years 80% 150k+: 30 basis point increase to 4.89% p.a. (4.69% p.a. comparison rate*)
For investors, some key increases included:
- Investment Fixed P&I 5 Years 80%: 30 basis point increase to 4.99% p.a. (5.21% p.a. comparison rate*)
- Investment Fixed IO 5 Years 80%: 30 basis point increase to 5.19% p.a. (5.44% p.a. comparison rate*)
- Premier Advantage Investment Fixed P&I 5 Years 80%: 30 basis point increase to 4.79% p.a. (4.63% p.a. comparison rate*)
- Premier Advantage Investment Fixed IO 5 Years 80%: 30 basis point increase to 4.99% p.a. (4.86% p.a. comparison rate*)
Read more: Which lenders offer five-year fixed rate home loans
Putting this increase into perspective, a little over a year ago Westpac’s Premier Advantage P&I 150k+ home loan for five years at a loan-to-value ratio (LVR) of 95% was 2.59% p.a. (3.43% p.a. comparison rate*).
In 12 months, this loan has increased 210 basis points to reach a rate of 4.69% p.a. (4.27% p.a. comparison rate*).
On a $600,000 loan, this difference over the course of a year may see home buyers forking out approximately $709 extra in interest per month over a 30-year loan term.
Image by Miguel A Padrinan via Unsplash
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