Westpac has today (Wednesday) announced fixed mortgage rate increases of between +4 and +20 bps.
These hikes follow those earlier by ANZ, although Westpac have retained their five year 'special'.
Banks have been raising fixed mortgage rates quickly recently as the relentless rise in wholesale rates drives money costs higher.
Today, the wholesale swap rates for terms of 2, 3, and 4 years are up by another +2 or +3 bps. Just in December, that brings the rise in two year swap rates to +17 bps, the rise in three year swap rates to +23 bps, in four year swap rates to +25 bps and in five year swap rates to +32 bps.
ANZ reinforced that with their Monday hike by offering higher term deposit rates as well. But Westpac have not followed that term deposit reaction, yet.
The Westpac mortgage changes are for 2, 3 and 4 year fixed terms.
Their two year 'special' has been increased by +15 bps to 4.54%. This is 5 bps lower than the equivalent ANZ rate but higher than those currently offered by their other main rivals.
Their three year 'special' has been increased by +4 bps to 4.79%.
And their four year standard rate has been raised by +20 bps to 5.49%. This is actually the highest four year rate in the market offered by any bank.
These new Westpac rates are effective Thursday, December 22, 2016.
A snapshot from the key retail banks is:
|below 80% LVR||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
In addition to the above table, BNZ has a fixed seven year rate of 5.99%.
TSB Bank offers a fixed ten year rate at 5.75%.