Second increase in six weeks leaves ANZ with lowest big four fixed rate
NAB has raised selected fixed home loan rates by up to 0.40 percentage points, as major lenders continue to price in the risk of a cash rate increase as early as February.
It is NAB’s second fixed rate rise in six weeks and follows a round of fixed rate increases by Commonwealth Bank earlier this month.
Following the latest changes, ANZ now has the lowest advertised fixed rate among the major banks, offering 5.44% for a two‑year term.
Analysis from comparison site Canstar shows that 54 lenders have increased at least one fixed rate since the Reserve Bank of Australia’s last cash rate decision on 9 December. Over the same period, the number of lenders offering fixed rates below 5% has dropped from 38 to 12.
“Fixed rates continue to steadily march north with NAB the latest big bank to hike rates, this time by up to 0.40 percentage points,” said Sally Tindall (pictured right), data insights director at Canstar.com.au.
“When the RBA Governor says a cash rate hike is a live option, banks take notice, and so it’s no surprise to see 54 of the lenders on Canstar have hiked at least one fixed rate since the last RBA board meeting, including all of the majors.
“Fixed rates are surging out of the 4s, and well into the 5s and 6s. As a result, there are now just 12 lenders offering a fixed rate under 5% – a significant retreat from the 38 recorded two months ago.
“While the majority of borrowers are on a variable rate and intend on sticking with this strategy, the mass migration of fixed rates is a pre-emptive move by the banks to counter a higher cash rate in 2026. This is yet another sign borrowers need to start getting prepared.”
Tindall pointed to recent labour market data as one reason markets still expect the RBA to keep tightening bias on the table. “A rate hike in 2026 is not a foregone conclusion, but [last week’s] ABS Labour Force data certainly isn’t standing in the central bank’s way,” she said.
“The bottom line is, Australia still has an inflation problem, four long years into this battle. (Tomorrow’s) quarterly inflation results will be critical to the Board’s decision-making. If it shows we’re making genuine inroads towards the mid-point of 2.5%, then it should be enough to fend off a hike in February. However, if inflation is just spinning on its wheels, or worse still, on the rise, then we’ll more than likely see a hike.”
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