The Reserve Bank lifted the cash rate by 0.25 percentage points to 4.60% on Tuesday 29 September. Fixed home loan rates have moved further than that. As the Australian Financial Review reported on Monday 5 October, the major banks have raised fixed mortgage rates by almost double the RBA’s increase, as funding pressure on the industry builds. NAB has now lifted its fixed rates twice in just over two weeks.
The short version
- The cash rate rose 0.25 points to 4.60% on 29 September. Variable rates at the big four go up by the same 0.25 from Friday 9 October.
- Big-bank fixed rates have risen by up to 0.48 points on a single term since mid-September (CBA’s 2-year rate went from 6.34% to 6.82%).
- NAB’s lowest 2-year fixed rate is up 0.47 points in just over two weeks, to 6.81%.
- The lowest big-four fixed rate reported on 2 October was 6.49% (ANZ, 1- and 2-year). A handful of smaller lenders still offer fixed rates starting with a 5.
- If you’re partway through a fixed term, your rate doesn’t change. These moves matter if you’re fixing now or your fixed term is about to end.
What’s changed
Here are the big four’s lowest advertised fixed rates for owner-occupiers, as reported by Canstar and Yahoo Finance. Lenders have moved on different days, so check the date beside each one. Rates can change at any time and conditions such as LVR apply.
| Bank | 1-year | 2-year | 5-year | As reported |
|---|---|---|---|---|
| NAB | 6.79% | 6.81% | 6.94% | 2 Oct |
| CBA | 6.78% | 6.82% | 6.94% | 22 Sep |
| Westpac | 6.74% | 6.74% | 7.14% | 18 Sep |
| ANZ | 6.49% | 6.49% | 6.69% | 1- and 2-year 2 Oct; 5-year 17 Sep |
NAB’s latest change, announced on Friday 2 October, added up to 0.32 points on top of a 0.15 rise on 17 September. Westpac lifted its fixed rates by up to 0.45 points on 18 September, taking its 4-year rate to 7.09%. By 22 September, Canstar had counted 16 lenders that had raised at least one fixed rate during the month.
Why fixed rates move before (and beyond) the cash rate
A variable rate follows the cash rate fairly closely. A fixed rate is a price for the next one to five years, so it reflects where lenders think rates and their own funding costs are heading. Canstar’s Sally Tindall said lenders were responding to pressure from wholesale funding costs and to a recalibration of their expectations for the cash rate. When a bank lifts its 2-year fixed rate by nearly twice a standard RBA move, it’s pricing in the chance that rates stay higher for longer.
That’s a signal, not a guarantee. The big four’s own economists don’t agree on what comes next. According to Mortgage Professional Australia, Westpac and ANZ are forecasting another 0.25 rise in November (which would take the cash rate to 4.85%), while CBA and NAB expect a hold. These are forecasts, and they can change. The RBA’s next decision is on Tuesday 3 November.
Who this affects
Not affected yet: if you’re partway through a fixed term, your rate is locked until the term ends. New fixed rates apply to new fixed loans and to borrowers whose fixed term is ending.
Fixed term ending soon: when the term ends, most loans roll onto the lender’s variable rate, which goes up from 9 October, unless you re-fix or move. Either way, you’re looking at a very different market from the one you fixed in.
Thinking about fixing or refinancing: the rates in the table are well above where they were in early September. Before 17 September, the lowest 2-year fixed rates at ANZ, NAB, CBA and Westpac were between 6.29% and 6.34%.
What a rate difference looks like
Illustrative example only. On a $600,000 loan over 30 years with principal and interest repayments, the standard repayment formula gives a monthly repayment of about $3,730 at 6.34% and about $3,920 at 6.82%. That’s CBA’s lowest 2-year fixed rate before and after its 22 September change: a difference of about $190 a month. It doesn’t include fees, and your own loan size, term and rate will give a different result.
Fixed or variable right now?
Fixing buys certainty, not necessarily savings. It can suit you if you need a firm ceiling on repayments for a while. The trade-offs are real: fixed loans often limit extra repayments, may not come with a full offset account, and can carry break costs if you sell or refinance during the term. With most big-bank fixed rates now above 6.5% and their lowest variable rates between about 6.24% and 6.5% from 9 October, a fixed rate isn’t automatically the cheaper option.
It also pays to look beyond the majors. Canstar’s lowest fixed rate was a 1-year rate of 5.79% from Police Credit Union as at 2 October. Tindall noted there’s no telling how long rates starting with a 5 will stay on the market, and eligibility rules apply.
What to check this week
- Your fixed expiry date. Find it on your loan statement or in your banking app.
- Your rollover rate. Ask your lender what rate you’ll move to when the term ends, and compare it with what other lenders are offering.
- Break costs. If you’re thinking of changing a fixed loan partway through, ask for a break cost quote first.
- Offset and extra repayments. Work out how much the flexibility of a variable loan is worth to you.
- Your 9 October notice. If you’re on a variable rate, check the new repayment in your lender’s notice and make sure your budget covers it.
Fixed term ending, or thinking about fixing?
If your fixed rate ends in the next few months, it’s worth talking to a broker before the rollover rate kicks in. Book a call and we’ll go through your options. We’ll start with general information, and if you want personal recommendations we’ll do a proper fact-find first. There’s no cost and no pressure.
Sources: Reserve Bank of Australia, “Statement by the Monetary Policy Board: Monetary Policy Decision”, media release 2026-27, 29 September 2026. Australian Financial Review, Jack Derwin, “Banks jack up fixed rates faster than RBA as funding pain deepens”, 5 October 2026. Yahoo Finance, Sophie Venz, “NAB delivers hefty hike in second rate increase in 15 days”, 2 October 2026 (NAB and ANZ rates, lowest market rate, quoting Canstar). Canstar, 17, 18, 22 and 30 September 2026 (NAB, ANZ, Westpac and CBA fixed-rate changes, lender count, CBA variable rate, comments from Sally Tindall). Mortgage Professional Australia, “CBA, Westpac, NAB, ANZ pass RBA rate rise in full”, 1 October 2026 (variable rates from 9 October and bank economists’ forecasts). Repayment example calculated by Loan Worth using the standard amortisation formula.
General information only, not credit advice. It doesn’t take your objectives, financial situation or needs into account.
Loanworth Pty Ltd (Credit Representative Number 547934) and Kym Tram, trading as Loan Worth (Credit Representative Number 498798), are Credit Representatives of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).