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NAB joins tide of fixed rate cuts while ANZ rocks boat with variable rate hike
07 Aug 2025
NAB has today cut fixed rates by up to 0.25 percentage points, joining the list of lenders taking the knife to these rates ahead of next week’s Reserve Bank of Australia (RBA) meeting. However, ANZ has bucked the trend by firing off a variable rate hike.
In what can only be categorised as a surprise move, ANZ has today increased the rate on its ANZ Plus variable home loan by 0.16 percentage points, taking this rate to 5.75% (comp rate 5.76%) for owner-occupiers paying principal and interest.
This rate change is only for new customers and does not impact existing ANZ Plus home loan borrowers.
The bank has also discontinued its $2,000 cashback offer for refinancers on this loan, from 1 August, however, the perk is still available on other ANZ home loans.
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| ANZ’s lowest variable rates | |||
|---|---|---|---|
| Old rate from | New rate from | Change % pts | |
| Owner-occupier | 5.59% | 5.75% | +0.16 |
| Investment | 5.89% | 6.05% | +0.16 |
Source: Canstar. Notes: based on principal and interest repayments. LVR and other requirements apply.
Looking across the whole market, banks are largely cutting variable rates, not hiking them. The last variable rate hike from a big bank for new customers was back in December 2023 by ANZ.
Big four banks – how do they now stack up?
As a result of the hike, ANZ no longer has the lowest variable rate on offer from the big banks, a title it previously held with CBA and Westpac, which continue to offer advertised variable rates from 5.59%.
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| Big banks’ lowest variable rates | |
|---|---|
| Provider | Advertised rates from |
| CBA | 5.59% |
| Westpac | 5.59% |
| NAB | 5.94% |
| ANZ | 5.75% |
Source: Canstar. CBA, Westpac and ANZ rates are for digital-only products. Each bank offers a range of variable rates from this lowest rate.
NAB adds to fixed rate cuts
On the flipside, NAB has joined the growing list of lenders cutting fixed home loan rates, with cuts of up to 0.25 percentage points.
This takes the bank’s lowest advertised fixed rate to 5.19% for its 2-year term for owner-occupiers paying principal and interest.
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| NAB’s changes to fixed rates | ||
|---|---|---|
| Term | New rate from | Change % pts |
| 1-year | 5.29% | -0.25 |
| 2-year | 5.19% | -0.25 |
| 3-year | 5.29% | -0.10 |
| 4-year | 5.69% | -0.10 |
| 5-year | 5.69% | -0.10 |
Source: Canstar. Notes: based on owner occupied loans with principal and interest repayments. LVR and other requirements apply.
Today’s changes now mean NAB has the lowest fixed 1- to 5-year fixed rates among the big banks, sharing the lead with ANZ for the 1- and 2-year terms.
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| Big four banks’ lowest fixed rates | ||||
|---|---|---|---|---|
| Term | CBA | Westpac | NAB | ANZ |
| 1-year | 5.69% | 5.69% | 5.29% | 5.29% |
| 2-year | 5.74% | 5.59% | 5.19% | 5.19% |
| 3-year | 5.49% | 5.89% | 5.29% | 5.34% |
| 4-year | 5.89% | 5.89% | 5.69% | 5.74% |
| 5-year | 6.29% | 5.89% | 5.69% | 5.74% |
Source: Canstar. Notes: based on owner occupied loans with principal and interest repayments. LVR requirements apply.
Our analysis shows almost 20 banks have cut at least one fixed home loan rate in the past month as banks continue to price in the possibility of another cash rate cut, potentially as early as next Tuesday.
Which lenders are offering the lowest fixed rates?
A total of 17 lenders now offer at least one fixed rate under 5%, including Macquarie, Greater Bank and Bank of Queensland.
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| Lowest fixed rates on Canstar.com.au | ||
|---|---|---|
| Term | Lender | Lowest rate from |
| 1-year | Pacific Mortgage Group, Bank of China | 4.99% |
| 2-year | Greater Bank, The Mutual | 4.94% |
| 3-year | Greater Bank, The Mutual | 4.94% |
| 4-year | Macquarie, People’s Choice, BOQ | 5.29% |
| 5-year | Macquarie, People’s Choice, BOQ, Heritage Bank | 5.29% |
Source: Canstar. Excludes eco loans.
Big banks are bracing for an RBA move
Canstar’s data insights director, Sally Tindall says: “NAB has come out swinging ahead of the RBA meeting, cutting fixed rates by up to 0.25 percentage points and undercutting its big bank rivals on a range of terms. Its two‑year rate at 5.19 per cent now sets the pace among the big four.”
“While fixed rates aren’t the flavour of the month for most borrowers, cuts like these are a sign the banks are bracing for the RBA to move again – most likely on Tuesday,” she says.
“On the flip side, ANZ’s hike to its lowest variable rate is a reminder some banks are still looking to protect margins. It’s an unusual move just days out from a Board meeting that could deliver a cut, but it shows how some banks don’t follow the tide. Let’s just hope it’s not contagious.
“CBA and Westpac are now clearly leading the big bank pack when it comes to variable rates, with a reasonably competitive 5.59 per cent. This could drop down to 5.34 per cent on the back of an RBA cut.
“While we expect all four big banks to step up and do the right thing by passing on the next cash rate cut in full to their variable customers, if you’ve got a mortgage, it’s worth keeping an eye on what your bank announces when the RBA does finally pull the trigger.
“We’d urge lenders to remember that many households are still under intense financial pressure. After 13 RBA rate hikes, four of which were doubles, the third cash rate cut in the cycle is not the time to baulk.
“Already we’ve seen one lender break the 5 per cent barrier for variable rate mortgages. Let’s hope others follow suit on the back of the next RBA cut.”
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This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
