NAB has today hiked its short-term fixed rates by 0.15 percentage points, the first big bank to move fixed rates since the May cash rate rise.
The move comes amid market expectations of a cash rate hold next month, however, many economists believe interest rates could still rise further beyond June, and stay high for longer.
NAB’s lowest | |||
|---|---|---|---|
Term | Old rate | New rate | Change |
1-year | 6.34% | 6.49% | +0.15 |
2-year | 6.39% | 6.54% | +0.15 |
3-year | 6.49% | 6.49% | No |
4-year | 6.49% | 6.49% | No |
5-year | 6.49% | 6.49% | No |
Source: Canstar - 29/05/2026. Rates based on owner-occupier fixed-rate loans. LVR requirements apply.
Out of the big four banks, Canstar rate tracking shows Westpac still leads the majors with the lowest fixed rate on offer, which is its two-year loan at 6.29%.
Big four banks’ | ||||
|---|---|---|---|---|
CBA | Westpac | NAB | ANZ | |
1-year | 6.49% | 6.39% | 6.49% | 6.34% |
2-year | 6.34% | 6.29% | 6.54% | 6.39% |
3-year | 6.59% | 6.49% | 6.49% | 6.54% |
4-year | 6.64% | 6.69% | 6.49% | 6.54% |
5-year | 6.79% | 6.69% | 6.49% | 6.59% |
Source: Canstar. Rates based on owner-occupier fixed rate loans. LVR requirements apply.
Outside of the majors, the lowest fixed rate is now 5.99% available for both a 1- and 2-year term. Rate tracking by Canstar shows there are just three lenders still offering a fixed rate under 6%.
Canstar analysis shows almost 90% of lenders’ lowest rates are now variable, not fixed, with an average gap of 0.27 percentage points between each lender’s lowest fixed and variable rates.
Lowest | ||
|---|---|---|
Term | Lender | Lowest |
1-yr | Northern Inland, | 5.99% |
2-yr | Pacific Mortgage Group | 5.99% |
3-yr | Pacific Mortgage Group | 6.09% |
4-yr | Bank of China, | 6.39% |
5-yr | Great Southern Bank | 6.30% |
Source: Canstar. Rates based on owner occupier fixed rate loans. LVR requirements apply.
Mortgage market posts another record high, even as rates climb
The total value of residential home loans has hit another record high of $2.48 trillion in April, despite consecutive cash rate hikes, which have taken some of the heat out of the property market.
APRA statistics, released today, show housing loans among authorised deposit-taking institutions (ADIs) increased by $14.3 billion in April, up 0.6% from the previous month.
Macquarie recorded the largest monthly increase in both dollar and percentage terms among all ADIs for the second month in a row, rising by $3.5 billion or 2.0% in the month, and a staggering 27.5% compared to a year ago, strengthening its position as the fifth-largest lender.
Loans to households: | ||||
|---|---|---|---|---|
Amount | Market | Monthly | Year-on-year | |
CBA | $627.5 | 25% | +0.5% | +7.1% |
Westpac | $512.4 | 21% | +0.7% | +5.8% |
NAB | $348.5 | 14% | +0.4% | +5.5% |
ANZ | $325.9 | 13% | +0.5% | +3.7% |
Macquarie | $177.2 | 7% | +2.0% | +27.5% |
All ADI | $2.48 | 100% | +0.6% | +7.0% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, April 2026, released 29 May 2026, prepared by Canstar. Includes both owner-occupied and investor loans to households for the big four banks and Macquarie. ANZ figures do not include former Suncorp mortgages.
Investor loan growth still outpacing owner-occupiers
Growth in investor mortgages was stronger than owner-occupier lending in April, in percentage terms, with the value of new investor loans rising 0.8% in the month, compared with owner-occupier loans at 0.5%.
Across the year, investor loan balances rose 8.9%, outpacing the 6.1% growth recorded for owner-occupier mortgages.
Loans to households: | |||
|---|---|---|---|
Amount | Monthly | Year-on-year | |
Owner- | $1.7 | +$7.7 | +$95.8 |
Investor | $807.2 | +$6.7 | +$65.8 |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, April 2026, released 29 May 2026, prepared by Canstar.
Reprieve still a while away
Canstar’s Data Insights Director, Sally Tindall, says, “NAB’s relatively minor hikes to fixed rates are a sign that lenders aren’t convinced the rate hiking cycle is over.”
“Fixed rates are often a window into what banks think is coming next. NAB’s decision to lift its short-term fixed rates suggests it’s not ready to rule out further rate rises, even though the RBA will almost certainly hit pause next month.
“Competitive fixed rates are fast becoming a thing of the past. At the start of the year there were 83 lenders offering at least one fixed rate under 6 per cent. Today there are just three.
“In comparison, there are still over 40 different lenders with at least one variable rate under 6 per cent, following the RBA May hike.
“Borrowers hoping for a reprieve will be waiting for a while. The reality is, rates are likely to remain high for the foreseeable future and could well get one or two notches tighter.
“Even after back-to-back cash rate hikes, Australia’s mortgage market continues to barrel ahead, with the total value of housing loans hitting yet another record high.
“While the big four still dominate the mortgage landscape, Macquarie continues to chase them down. Its loan book has surged almost 28 per cent over the past year.
“This data paints a picture of a housing market that’s proving remarkably resilient. Interest rates are higher, house price growth has cooled in key markets of Sydney and Melbourne, yet Australians are still adding more than $14 billion in housing debt every month.”
