CBA has today hiked fixed rates for its owner-occupier and investor loans for new customers, with increases of up to 0.48 percentage points.
This is almost two times a standard 0.25 RBA hike on the bank’s lowest 2-year fixed rate, just seven days out from the next central bank cash rate decision.
CBA’s lowest fixed rates | |||
|---|---|---|---|
Old | New | Change %-pts | |
1-year | 6.49% | 6.78% | +0.29 |
2-year | 6.34% | 6.82% | +0.48 |
3-year | 6.59% | 6.89% | +0.30 |
4-year | 6.64% | 6.89% | +0.25 |
5-year | 6.79% | 6.94% | +0.15 |
Source: Canstar. Based on owner-occupier fixed-rate loans with a package. LVR requirements apply.
The changes follow similar moves by Westpac, NAB, and ANZ last week, which saw increases of up to 0.20 percentage points.
As a result, the lowest fixed rate available from a big four bank is now 6.49%, for a 1-year term from ANZ, and a 2-year term, from both NAB and ANZ.
Big four banks’ lowest rates | ||||
|---|---|---|---|---|
CBA | Westpac | NAB | ANZ | |
1-year | 6.78% | 6.74% | 6.59% | 6.49% |
2-year | 6.82% | 6.74% | 6.49% | 6.49% |
3-year | 6.89% | 6.94% | 6.64% | 6.64% |
4-year | 6.89% | 7.09% | 6.64% | 6.64% |
5-year | 6.94% | 7.14% | 6.64% | 6.69% |
Variable | 6.09% | 5.99% | 6.09% - 6.79% | 6.25% |
Source: Canstar. Rates based on owner-occupier fixed-rate loans. LVR requirements apply.
CBA has joined the growing list of lenders hiking fixed rates this month, with Canstar rate tracking showing 16 lenders have now increased at least one fixed term in September.
List of lenders that have hiked fixed rates so far in September
CBA | Macquarie | BankSA | Queensland Country Bank |
Westpac | ING | Great Southern Bank | Aussie |
NAB | St George | Bank Australia | Firstmac |
ANZ | Bank of Melbourne | Qudos Bank | loans.com.au |
Seven lenders still have a fixed rate starting with a 5
While the majors’ fixed rates are largely now above 6.50%, and in some cases over 7.00%, there are still seven banks offering at least one fixed rate starting with a 5 for owner-occupiers, with the lowest on the Canstar database a now competitive 5.79%.
Lowest rates on Canstar | ||
|---|---|---|
Lender | Rates from | |
1-year | Police Credit Union | 5.79% |
2-year | Police Credit Union | 5.89% |
3-year | Police Bank | 5.84% |
4-year | Southern Cross Credit Union | 6.29% |
5-year | Southern Cross Credit Union | 6.29% |
Variable | Pacific Mortgage Group | 5.69% |
Source: Canstar. Rates based on owner-occupier fixed-rate loans. LVR requirements apply.
Canstar analysis shows a borrower with a $600,000 mortgage and 25 years remaining could save an estimated $776 in interest over the next 12 months by opting for the lowest 1-year fixed rate rather than the lowest variable rate, based on CBA’s forecast of a rate hike this month followed by two cash rate cuts from August 2027.
This assumes banks pass on variable rate changes to their customers a month after a cash rate hike. It does not factor in any extra repayments or fees.
Lowest 1 year fixed vs lowest variable, $600,000 debt | |
|---|---|
No. of 0.25%-pt hikes | Which comes out on top after 1 year? |
0 hikes | Variable by $722 |
1 more hike | Fixed by $776 |
2 more hikes | Fixed by $2,022 |
Source: Canstar. Calculations are estimates based on an owner occupier paying principal and interest with a $600k debt at 1 October 2026 and 25 years remaining. Assumes a 0.25 percentage point hike in September 2026 and one 0.25 cut in August 2027 in line with CBA’s current cash rate forecast for the next 12 months. Assumes banks pass on RBA changes to variable rates the month after. Does not factor in fees or extra repayments.
Borrowers shouldn’t assume the fixed rate market is devoid of competition
Canstar’s Data Insights Director, Sally Tindall, says, “Australia’s biggest bank has delivered a hefty blow to its fixed rates, jacking up its 2-year loan by 0.48 percentage points – nearly twice the size of a standard cash rate hike.”
“A 0.48 percentage point increase isn’t a tweak, it’s a clear signal Australia’s biggest bank is bracing for higher borrowing costs ahead.
“While the major banks have now pushed their lowest fixed rates well into the sixes, borrowers shouldn’t assume the fixed rate market is completely devoid of competition.
“There are still seven lenders on the Canstar database offering fixed rates starting with a 5 to owner-occupiers, although many of these could well disappear if the RBA hikes the cash rate on Tuesday.
“Anyone considering a fixed rate would do well to look beyond the majors and take their time weighing up their options. Yes, the window on fixed rates starting with a 5 could be closing but when it comes to big financial decisions, it’s important to do your due diligence.
“While in theory, based on current cash rate forecasts, fixing for one year could potentially see you pay less interest. However, the cash rate isn’t set in stone and a lot of borrowers are likely to ride it out. If that’s you, make sure you’re on a competitive rate.”
