Australia’s two biggest banks increase fixed rates in anticipation of further RBA hikes
25 Feb 2026
Australia’s two biggest banks, CBA and Westpac, have hiked fixed rates today, by up to 0.25 and 0.30 percentage points respectively.
This is the second time in six weeks that CBA has hiked fixed rates. As a result, the bank has relegated every one of its lowest fixed rates to the 6’s.
Westpac has also lifted its fixed rates today, but despite these increases, the bank’s 1, 2 and 3-year fixed rates still start with a 5.
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| Changes to lowest fixed rates: CBA & Westpac | ||
|---|---|---|
| CBA | Westpac | |
| 1-year | + 0.25 to 6.19% | +0.30 to 5.79% |
| 2-year | +0.25 to 6.04% | +0.30 to 5.89% |
| 3-year | +0.25 to 6.29% | +0.30 to 5.99% |
| 4-year | +0.25 to 6.34% | +0.20 to 6.09% |
| 5-year | +0.25 to 6.49% | +0.20 to 6.09% |
Source: Canstar. Rates are for owner-occupiers paying principal and interest. LVR requirements and fees apply.
As a result of today’s changes, NAB now has the lowest advertised fixed rates across all loan terms, with ANZ offering the equal lowest on its 2-year fixed rate and Westpac on its 5-year rate.
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| Big four banks lowest fixed rates | ||||
|---|---|---|---|---|
| CBA | Westpac | NAB | ANZ | |
| 1-year | 6.19% | 5.79% | 5.74% | 5.89% |
| 2-years | 6.04% | 5.89% | 5.79% | 5.79% |
| 3-years | 6.29% | 5.99% | 5.84% | 6.04% |
| 4-years | 6.34% | 6.09% | 5.99% | 6.09% |
| 5-years | 6.49% | 6.09% | 6.09% | 6.24% |
Source: Canstar. Rates are for owner-occupiers paying principal and interest. LVR requirements and fees may apply.
CBA and Westpac not hiking alone
Australia’s biggest banks are not the only ones hiking fixed rates. Rate tracking by Canstar shows around 60 lenders have hiked at least one fixed rate since the RBA’s decision to increase the cash rate on 3 February.
Lowest fixed rates now start with a ‘5’
Fixed rates under 5% are no longer an option in the current market, with the last one disappearing on 11 February.
The lowest fixed rate is at 5.18%, which is fixed for two years.
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| Lowest fixed rates on Canstar.com.au | ||
|---|---|---|
| Fixed rate term | Lender | Lowest rate from |
| 1-year | Horizon, Southern Cross Credit Union | 5.24% |
| 2-year | BankVic | 5.18% |
| 3-year | BankVic | 5.18% |
| 4-year | Southern Cross Credit Union | 5.54% |
| 5-year | Horizon, Southern Cross Credit Union | 5.64% |
Source: Canstar. Rates are for owner-occupiers paying principal and interest. Note LVR and other requirements apply for lowest rates.
Fixed rates still on the nose with most borrowers
Variable rates are still the dominant choice for borrowers as fixed rates continue to fall in popularity.
CBA has the highest proportion of home loan customers on fixed rates, among the big four banks, but it remains a very small and shrinking cohort – just 4% of outstanding mortgages, down from 9% a year ago.
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| Proportion of fixed rates on the bank’s residential mortgage books | |
|---|---|
| CBA | 4.0% as at 31 Dec 2025 |
| Westpac | 3.0% as at 31 Dec 2025 |
| NAB | 2.7% as at 6 Nov 2025 |
| ANZ | 2.0% as at 10 Nov 2025 |
Source: CBA, Westpac, NAB, ANZ.
Second spate of fixed rate hikes in the space of six weeks
Canstar’s data insights director, Sally Tindall, says, “This latest round of fixed rate increases from Australia’s two biggest banks are in response to elevated fixed rate funding costs, but also an expectation this is not the end of the cash rate hikes.”
“Competition in the fixed rate space, and the near-anaemic appetite from customers to lock in their home loan rate is also likely to have played a role.
“This is the second spate of fixed rate hikes from CBA in the space of six weeks. These two moves combined have pushed every one of its sharpest offers into the 6’s.
“Just four months ago CBA was offering a fixed rate in the 4’s. Now the lowest option is a highly uncompetitive 6.04 per cent.
“While Westpac has hiked some of its fixed rates by up to 0.30 percentage points, unlike CBA, the bank still offers sub-6 per cent fixed rates.
“This latest round of fixed rate hikes isn’t happening in a vacuum. Since the Reserve Bank lifted the cash rate on 3 February, around 60 lenders have hiked at least one of their fixed rates.
“We expect this trend will continue as the possibility of further cash rate hikes continues to ramp up.”
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
