Number of sub‑5% fixed rates almost halve in just a month
ANZ has increased fixed home loan rates for both owner-occupiers and investors, becoming the third major bank after NAB and Westpac to lift fixed pricing within just over a week.
The bank has raised owner-occupier fixed rates by up to 0.30 percentage points, with its lowest fixed home loan rate now at 5.44%. Commonwealth Bank currently holds the lowest advertised fixed rate among the major banks at 5.34% for a three-year term, after a period of rapid repricing as lenders move fixed rates higher.
According to rate monitoring by Canstar, 38 lenders have lifted at least one fixed rate so far in December, with 30 of those making changes in the 10 days following the Reserve Bank of Australia’s December cash rate decision, when the governor signalled that further increases in the cash rate remain possible.
Canstar’s data show that only 23 lenders now offer a fixed rate below 5%, down from 42 a month earlier, meaning the number of sub‑5% fixed products has almost halved in around 30 days.
“ANZ’s hike to its fixed loans today is yet another sign increases to the cash rate are on the horizon,” said Sally Tindall (pictured right), data insights director at Canstar.com.au. “Right now, CBA has the lowest fixed rate out of the majors, but that could turn on its head, yet again, if it joins the rate hike frenzy.
“With the number of fixed rates under 5% starting to drop like flies, we could see more borrowers contemplate the possibility of fixing. In the last month, we’ve seen the number of lenders offering a fixed rate under 5% almost halve. There’s still plenty of choice in this list for owner-occupiers, but the options are likely to shrink even further in the new year.”
According to Tindall, fixing has been on the nose in 2025 as borrowers stuck to variable in the hope there’d be further cash rate cuts. “Now the [RBA] governor has poured cold water over this idea, fixed rates might stage a bit of a comeback.
“The fact that the window for fixed rates under 5 per cent could be closing, might just push some borrowers to climb on in.”
Tindall advised borrowers who are seriously considering switching to fixed to ensure that they have read the fine print and run through the numbers. “You want to be happy with your rate, regardless of what the RBA might do in 2026 and beyond,” she said. “Shop around because while fixed rates might be on the rise, there’s still a world of difference between a competitive fixed loan and an average one.”
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