Westpac has today hiked fixed rates for the second time in the last three weeks as the bank prices in the possibility of further cash rate rises, with the next RBA decision just 12 days away.
Today’s hikes of 0.15 percentage points add to the bank’s previous round of increases of up to 0.45 percentage points.
As a result, Westpac’s lowest fixed rate is now 6.29%, available for a 2-year term.
Changes to Westpac’s | |||
|---|---|---|---|
Old rate | New rate | Change | |
1-year | 6.24% | 6.39% | +0.15 |
2-year | 6.14% | 6.29% | +0.15 |
3-year | 6.34% | 6.49% | +0.15 |
4-year | 6.54% | 6.69% | +0.15 |
5-year | 6.54% | 6.69% | +0.15 |
Source: Canstar - 23/04/2026. Rates based on owner-occupier fixed-rate loans. LVR requirements apply.
Despite this move, Westpac still has the lowest fixed rate out of the majors.
Big four banks’ | ||||
|---|---|---|---|---|
CBA | Westpac | NAB | ANZ | |
1-year | 6.49% | 6.39% | 6.34% | 6.34% |
2-year | 6.34% | 6.29% | 6.39% | 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.
Fixed rates keep on rising
Rate tracking by Canstar shows over 90% of lenders have hiked at least one fixed rate since the March RBA cash rate decision, including all four big banks, two of which have hiked twice
Big four bank fixed rate hikes since March RBA decision (17 March):
- CBA: Hiked fixed rates on 27 March.
- Westpac: Hiked fixed rates on 2 April and 23 April.
- NAB: Hiked fixed rates on 27 March and 10 April.
- ANZ: Hiked fixed rates on 1 April.
Looking at the average change, the data suggests lenders are pricing in the possibility of more than one RBA cash rate hike.
Canstar research shows the average of the lowest fixed rates on the database has risen by between 0.42 and 0.43 percentage points in the last five weeks.
Change to owner-occupier | ||
|---|---|---|
Average | Change since | |
1-year | 6.23% | +0.43% |
2-year | 6.25% | +0.43% |
3-year | 6.34% | +0.42% |
Source: Canstar.com.au. Note: based on the average of the lowest rates from each lender on the Canstar database. Excludes green loans.
Fixed rates under 6 per cent now a rarity not a surety
Tracking by Canstar shows there are now just 19 lenders with at least one fixed rate under 6%. There were 83 at the start of this year.
Number of lenders offering competitive fixed rates: today vs start of year
The lowest fixed rate is now 5.49% from Northern Inland Credit Union for a 1-year term.
Lowest | ||
|---|---|---|
Lender | Lowest rate | |
1-yr | Northern Inland | 5.49% |
2-yr | Bank Vic | 5.79% |
3-yr | BankVic | 5.79% |
4-yr | BankVic | 6.09% |
5-yr | Horizon Bank | 5.94% |
Source: Canstar.com.au. Rates based on owner occupier fixed rate loans. LVR requirements apply.
A clear signal that competitive fixed rates are slipping away
Canstar's Data Insights Director, Sally Tindall, says, “Fixed rates are on the move again, with some lenders going for a second round of hikes in-between RBA meetings.”
“Westpac’s doubling down on fixed rate hikes isn't an isolated event. Plenty of banks are heading back to the pricing drawing board, some for the second time in a matter of weeks, as a result of growing concern Australia’s inflation rate is about to spike once again.
“Canstar analysis shows more than 90 per cent of lenders have moved fixed rates since the last RBA decision, including all four big banks, with both Westpac and NAB having two stabs at it in this time.
“Banks aren’t just hiking by a standard cash rate rise. Our research shows the average owner-occupier fixed rate has risen by 0.43 percentage points since the last RBA decision in March, suggesting banks are pricing in more than one further cash rate hike.
“Banks don’t exactly want to get caught short having to fund what might turn out to be a competitively-priced fixed-rate loan, particularly when a rate that starts with a ‘6’ isn’t going to help them attract new customers.
“For borrowers, this swift repricing is a clear signal – opportunities to lock in a more competitive fixed rate are slipping away.
“Astonishingly, the lowest fixed rate in the database, a 1-year rate at what is now a competitively-priced 5.49 per cent, hasn’t budged for weeks. It’s hard to see this kind of offer sticking around for much longer.
“There’s just 19 lenders offering fixed rates below 6 per cent today. At the start of the year, it was about the same number of lenders offering rates below 5 per cent. That’s a sharp about-face in the fixed-rate market in a remarkably short space of time.”
