Westpac has today hiked fixed rates by up to 0.45 percentage points, joining a growing chorus of lenders – including the other three major banks – moving to increase fixed mortgages.
As a result, Westpac no longer has a fixed rate under 6%, with the lowest rate now 6.14% for a two-year term.
Changes to Westpac’s lowest fixed rates | |||
|---|---|---|---|
Term | Old rate from | New rate from | Change %-pts |
1-year | 5.79% | 6.24% | +0.45 |
2-year | 5.89% | 6.14% | +0.25 |
3-year | 5.99% | 6.34% | +0.35 |
4-year | 6.09% | 6.54% | +0.45 |
5-year | 6.09% | 6.54% | +0.45 |
Source: Canstar - 2/04/2026. Rates based on owner-occupier fixed-rate loans. LVR requirements apply.
Looking at the big four bank mortgage rates, NAB now offers the lowest fixed rate out of the majors at 6.04% for a one-year term.
Big four banks’ lowest fixed rates | ||||
|---|---|---|---|---|
CBA | Westpac | NAB | ANZ | |
1-year | 6.49% | 6.24% | 6.04% | 6.34% |
2-year | 6.34% | 6.14% | 6.09% | 6.39% |
3-year | 6.59% | 6.34% | 6.19% | 6.54% |
4-year | 6.64% | 6.54% | 6.19% | 6.54% |
5-year | 6.79% | 6.54% | 6.19% | 6.59% |
Source: Canstar. Rates based on owner-occupier fixed rate loans. LVR requirements apply.
Westpac joins growing trend for fixed rate hikes
Rate tracking by Canstar shows 63 lenders have hiked at least one fixed rate since the last RBA decision just 16 days ago. This includes all four of the big banks – CBA, NAB, ANZ and now Westpac – but also Macquarie, Bendigo, ING and BOQ.
Lenders that have hiked at least one fixed rate per month
What is a decent home loan rate now?
As a result of the rate hikes, Canstar analysis shows:
- 5.59% is the lowest fixed rate from Regional Australia Bank and Pacific Mortgage Group for 1 and 2 years respectively.
- 40 lenders have a fixed rate under 6% today, this compares to 83 lenders at the start of the year.
- Just 26% of lenders’ lowest home loan rates are now fixed.
Lowest 1-year fixed rates | Lowest 2-year fixed rates | |||
|---|---|---|---|---|
Lender | Lowest rate from | Lender | Lowest rate from | |
Regional Australia Bank | 5.59% | Pacific Mortgage Group | 5.59% | |
Pacific Mortgage Group | 5.69% | Regional Australia Bank | 5.64% | |
Transport Mutual | 5.74% | HSBC | 5.74% | |
Source: Canstar.com.au. Rates based on owner occupier fixed rate loans. LVR requirements apply.
Term deposit rates also on the rise
Term deposit rates have hit their highest level in years, with Rabobank posting a rate of 5.70% for a five-year term, but only for deposits of $500,000 or more.
The next highest term deposit rate is 5.60% from Great Southern Bank for a five-year term, for balances of $5,000 or more, for those aged 55 and over, or 5.50% for all adults. Rabobank also offers a rate of 5.50% for balances up to $100,000.
The Canstar database shows 59 banks have hiked at least one term deposit rate since the RBA cash rate decision last month, including hikes from CBA, Westpac, Macquarie, ING, Judo Bank, BOQ and Bendigo Bank.
Number of banks that have changed at least one deposit rate
Highest term deposit rates on Canstar.com.au | ||
|---|---|---|
Term | Bank | Rate |
1-year | MOVE, RACQ, Gateway Bank | 5.45% |
2-year | Heartland | 5.40% |
3-year | Heartland | 5.40% |
4-year | Rabobank | 5.50% |
5-year | Rabobank | 5.70% |
Source: Canstar. Note: interest frequency, age restrictions and deposit amounts apply.
Westpac's rate hike points to tougher times ahead
Canstar data insights director, Sally Tindall, says, “Westpac was the last of the big four banks holding onto fixed rates starting with a ‘5’. Seeing the bank hike its lowest fixed rate to 6.14 per cent underscores just how quickly the rate cycle has shifted”.
She added: “With more than 60 lenders lifting fixed rates since the RBA’s March meeting, it’s clear the market is increasingly bracing for the possibility of further tightening, as global tensions start to feed into costs here at home.
“Westpac’s updated cash rate forecast points to more rate hikes on the horizon, reinforcing the view that even tougher times are ahead.
“While further rate hikes could be just around the corner, this is not set in stone. If households and businesses wind back too far, the economy could easily stall, jobs could be at risk and the RBA could be forced to change course again.
“While the cash rate is ratcheting up the pressure on households with a mortgage, savers are finally getting a decent look in. Term deposit rates are climbing to levels we haven’t seen in years, with the highest rate now sitting at 5.70 per cent for a five-year term.
“As always with these highest rates, it can often come down to the fine print as to whether you qualify. Be across the details and if it doesn’t fit, don’t wear it – there are plenty of options to choose from.”
