Westpac is the latest, and largest bank to raised fixed mortgage rates and by as much as +35 bps. They follow a slew of challenger banks. Despite that a fixed rate loan retains some clear advantages

Westpac has become the latest to hike its fixed home loan rates.

This comes as financial markets have pushed up yields on benchmark bonds recently, especially for the longer terms. And that is also raising yields on shorter terms.

For example, the Australian government 10 year bond yield has gone from 4.10% two months ago, to 4.43% one month ago to 4.75% today. That is emblematic of the global bond market, and consequently, the wholesale cost of money.

The RBA data shows non-financial corporate A-rated bond yields for a 3 year target tenor rising over the same time-frame from 4.38%, two months ago, to 4.66% a month ago, about 4.78% today. The cost of money that underpins fixed rates is rising.

There are both local and international drivers of this push higher, and when both move in the same direction, there is no hiding from them.

Westpac has raised its one year fixed Premier Advantage Package rate by +25 bps for owner occupiers with a P&I loan. For two years fixed the rise is +35 bps, and for three years it is +30 bps. It makes little difference whether you have a sub-70% LVR, a 70-80% LVR or an over 80% LVR. And the changes are also similar if you have an interest-only loan.

If you are an investor, you face similar rises.

You can find the actual new rates for every Westpac mortgage product using our clever mortgage rate table. That allows you to customise the rates to what you need, between advertised rates, Comparison Rates, and the much more useful Effective Rates which convert everything to what applies to your specific circumstance.

Westpac isn't the only bank to recently raise fixed home loan rates. They follow HSBC, Suncorp, ING, and to a lesser extent Bendigo.

Variable home loan rates are not rising, not at this time however. But wholesale money markets are pricing in a rate hike by the RBA, and if that comes to pass those variable rates will. So fixed rates can lock in mortgage rates and mortgage payments that would not be affected by a rising policy rate in the way variable rates are. So they remain a good, active consideration.

Besides, not every bank has raised fixed rates - yet. And that creates opportunities to grab some good low rates to fix now.

Check them all our here. Bookmark that page because rates change regularly and we are always up-o-date.