CBA breaks the 5% barrier with a 2-year fixed rate special
17 Sept 2025
CBA has today broken the 5% barrier, introducing a 2-year fixed rate special of 4.99% (comparison rate 7.24%*).
This is the first time the bank has offered a rate in the ‘4’s’ in this current cutting cycle, however, the bank has said it is only available for a limited time for owner-occupiers paying principal and interest with deposits of 30% or more.
The move follows Westpac’s fixed rate cuts on 29 August, which saw its lowest advertised fixed rate drop to 4.89% (comparison rate 5.88%*).
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| CBA 2-year fixed rate special | |
|---|---|
| Rate | 4.99% p.a for 2-years, comparison rate 7.24% p.a* |
| For | Owner-occupiers paying principal and interest. Min deposit of 30%. |
Note: for customers on the Wealth package. Annual fee of $395 applies. See comparison rate warning at end. CBA has said the loan is available from 17 Sept and will be published on the bank’s website from 18 Sept.
How the big four banks fixed rates stack up
CBA’s special might take the bank below the 5% barrier, but it still can’t claim the title of the big four bank with the lowest advertised rate.
Westpac is still the market leader for fixed rates among the big four banks, holding the lowest fixed rates across the board except for the 3-year fixed rate, where it shares the title with NAB.
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| Big four banks’ lowest fixed rates from | ||||
|---|---|---|---|---|
| Term | CBA | Westpac | NAB | ANZ |
| 1-year | 5.49% | 5.19% | 5.29% | 5.29% |
| 2-year | 4.99%^ | 4.89% | 5.19% | 5.19% |
| 3-year | 5.34% | 5.29% | 5.29% | 5.34% |
| 4-year | 5.79% | 5.59% | 5.69% | 5.74% |
| 5-year | 5.94% | 5.59% | 5.69% | 5.74% |
Source: Canstar.com.au. Notes: based on owner occupied loans with principal and interest repayments. LVR requirements apply. ^ Limited time special only.
Lowest fixed rate in market sits at 4.64%
The list of lenders offering at least one fixed rate under 5% continues to grow, with our analysis showing there are now over 30 lenders offering at least one fixed rate under 5%, when at the start of the year there were none.
The lowest available rate in the Canstar database is from 4.64% offered by Pacific Mortgage Group and Australian Mutual Bank for a 2-year term for owner-occupiers.
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| Lowest fixed rates on Canstar database | ||
|---|---|---|
| Term | Lender | Lowest rate from |
| 1-year | BCU, P&N Bank | 4.65% |
| 2-year | Pacific Mortgage Group, Australian Mutual Bank | 4.64% |
| 3-year | Australian Mutual Bank | 4.74% |
| 4-year | BOQ, Macquarie Bank, People’s Choice, Greater Bank | 5.29% |
| 5-year | Australian Mutual Bank | 5.19% |
Source: Canstar. Excludes eco loans. Australian Mutual Bank’s 2-year fixed rate is for first home buyers only.
Fixed rates under 5 not a rare sight
Canstar’s data insights director, Sally Tindall says, “CBA has finally broken through the 5 per cent barrier, but this new fixed rate comes with a catch.”
“At 4.99 per cent, fixed for 2 years, CBA’s new loan looks attractive, however, it’s only for a limited time and borrowers need to be living in the home they own with at least 30 per cent equity to be eligible.
“CBA’s latest move is designed to turn heads. Being able to say it has a rate in the ‘4s’ will catch people’s eye but in reality, smaller lenders are offering rates as low as 4.64 per cent.
“Fixed rates under 5 per cent are no longer a rarity. At the start of the year there wasn’t a single one, now we’ve got more than 30 lenders in this space. The competition is heating up as banks encourage more borrowers to lock in.
“While the thought of a rate starting with a ‘4’ might be tempting, don’t just be swayed by the headline number. Whether or not you should fix should also come down to your personal circumstances and appetite for certainty.
“It’s also important to keep a cool head when it comes to limited time offers. The mortgage market is flush with competition so don’t feel like there’s only one option available to you.
“The RBA has said at least one more cash rate cut is likely, however, exactly how many will come our way and in what timeframe is still very much up in the air.
“With the monthly CPI indicator going in the wrong direction, the economy picking up pace and unemployment sitting at a relatively low level, the urgency for another cash rate cut just isn’t there at this stage.
“For anyone tossing up between fixed and variable, understand what rates might do in the fixed term, but also know anything could happen so if you do lock in be happy with the rate come what may.”
* Comparison rate note: A comparison rate is a rate that all lenders by law must display next to their advertised interest rates. It’s a rate which takes into account some of the fees and charges of a home loan to give you a more accurate representation of a loan’s interest rate once the costs are taken into account. The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years. *This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
