• by
• Sarah Thompson
• Anthony Macdonald
• Joyce Moullakis

Westpac Banking Corp has joined the ranks of lenders jacking-up interest rates on fixed-rate home loans and investment property loans.

Street Talk understands the bank is raising rates on two, three and five year fixed-rate loans effective November 28. 

The largest increase will hit the five-year fixed rate investment property loan where the interest rate will rise 60 basis points to 4.79 per cent. 

The two and three year fixed rate investment loans go up by 30 basis points, while the same tenure home loans for owner occupiers rise 24 basis points.

The five-year fixed rate home loan interest rate will jump by 54 basis points to 4.59 per cent.

The Australian Financial Review this week reported that some lenders were raising the cost of buying property by up to 60 basis points. That came as the impact of the "Trump effect" took hold and amid growing expectations that central bankers are set to end the era of record low rates ripple through global markets.

ME Bank, which is owned by 29 industry funds, is also raising its variable rates by up to 10 basis points, the first hike in a variable rate in the latest round of increases. Fixed rates are rising by up to 15 basis points.

Other lenders, such as Bank of Sydney, are raising five-year fixed rates by up to 60 basis points. Other big increases on fixed rates include a 20 basis point increase by Bank of Queensland, according to Canstar, which monitors the cost of financial products and services.