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Major bank hikes investor rates by 31 basis points

by Lucy Dean1 minute read

A big four bank has introduced changes to interest rates on both principal and interest and interest-only loans.

Westpac has introduced changes to its fixed rates, effective 1 August 2017.

Investor fixed P&I rates with two-year terms will grow by 31 basis points to 4.39 per cent, while three-year terms will see a fall of 5 basis points to 4.44 per cent. Five- and six-year terms will both fall 10 basis points to 4.69 per cent.

Investor fixed IO rates with one- to five-year terms will all see hikes. One and two-year terms will grow 13 basis points to 4.99 per cent, while three-year terms will also increase by 13 basis points to 5.09 per cent. Four- and five-year terms will see rate increases of 23 basis points to 5.49 per cent.

Owner-occupied fixed principal and interest (P&I) rates will see a hike of 11 basis points for two-year terms, bringing the rate to 4.19 per cent per annum (p.a.). Three-year terms will conversely see falls of 10 basis points to 4.19 per cent, while both four- and five-year terms will see rates fall by 20 basis points to 4.39 per cent.

Owner-occupied fixed interest-only (IO) rates in one -and two-year terms will see a hike of 13 basis points to 4.79 per cent, while three-year terms will also grow 13 basis points to 4.89 per cent. Four- and five-year terms will increase by 0.13 per cent to 5.19 per cent.

[Related: Advantedge lifts interest-only rates]

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