- Commonwealth Bank and Westpac lifted fixed home loan rates this week
- Both major banks moved before January inflation data was released on Wednesday, which strengthened the case for a further cash rate increase in May
- Australia's two largest homelenders led around a dozen other banks in raising fixed home loan rates this week
Commonwealth Bank and Westpac again increased their fixed home loan rates on Wednesday in yet another sign lenders are expecting a further rise in the RBA cash rate.
Australia's two biggest home lenders both got in before the release of the January inflation data, which further cemented expectations of another interest rate rise in May.
ANZ, the last of the big four banks sitting on the fence, changed its outlook the next day, joining its peers in tipping a 25-basis point hike to the cash rate in May, which would lift it to 4.1%.
The home loan market has been positioning itself for a rate-hiking environment for some months.
Fixed rates have been consistently rising since it became apparent inflation was back in play in the Australian economy towards the end of last year.
Rate hikes are central banks' only tool in combating rising inflation.
While variable rates tend to move in lockstep with changes to the RBA cash rate, fixed rates tend to move ahead of the curve as they are based on forward-looking expectations, driven by wholesale funding markets that price in future rate movements.
With that in mind, let's check this week's action in the fixed home loan market.
CommBank lifts fixed rate home loans by 0.25%
CommBank instituted an across-the-board increase of 25 basis points on its fixed and Wealth Package fixed loans for both owner occupiers and investors.
It marks the second time CommBank has lifted its fixed rates in 2026, having also hiked them by up to 70 basis points in mid-January.
The latest increase means CommBank no longer advertises any fixed home loan rates below the 6% mark, with its best new fixed rate now 6.04% p.a. (7.64% p.a. comparison rate*) for Wealth Package customers fixing for two years.
It's worth noting CommBank was offering an eye-catching special fixed rate of 4.99% p.a. to new borrowers just five months ago.
Here's a selection of Commonwealth Bank's new fixed rates for owner occupiers making principal and interest (P&I) repayments:
| Fixed term | Interest rate | Comparison rate* |
| 1 year | 6.34% p.a. | 8.22% p.a. |
| (with package) | 6.19% p.a. | 7.81% p.a. |
| 2 year | 6.19% p.a. | 8.00% p.a. |
| (with package) | 6.04% p.a. | 7.64% p.a. |
| 3 year | 6.44% p.a. | 7.88% p.a. |
| (with package) | 6.29% p.a. | 7.58% p.a. |
| 4 year | 6.49% p.a. | 7.75% p.a. |
| (with package) | 6.34% p.a. | 7.49% p.a. |
| 5 year | 6.64% p.a. | 7.68% p.a. |
| (with package) | 6.49% p.a. | 7.46% p.a. |
Commonwealth Bank's Wealth Package offers discounted home loan interest rates and other benefits and comes with an annual package fee of $395.
See also: What is a package home loan?
Fixed interest rates for investors making P&I repayments are 0.05% higher than the advertised owner occupier fixed rates for one to three year terms and 0.20% higher for four and five year terms.
Higher rates apply for borrowers making interest only (IO) repayments.
Westpac raises fixed home loan rates by 0.30%
Westpac has again increased its fixed home loan rates after lifting them twice in December, following an earlier rise in November.
Westpac lifted both its standard fixed and Premier Advantage package fixed rates for owner occupiers and investors.
The latest increase takes the bank's best fixed rate to 5.79% p.a. (6.26% p.a. comparison rate*) for owner occupiers with a loan-to-value ratio (LVR) of up to 70% taking out a package loan and fixing for one year.
Westpac applies a 0.10% discount to its standard fixed rates for LVRs up to 70% and a 0.20% discount to those taking out the loan as part of its Premier Package (annual fee of $395 applies).
Below is a selection of Westpac's latest home loan rates for owner occupiers making P&I repayments with their comparison rates* appearing in brackets:
| 1 year | 2 year | 3 year | 4 year | 5 year | |
| Standard | 6.09% p.a. (8.21% p.a.) | 6.19% p.a. (8.01% p.a.) | 6.29% p.a. (7.85% p.a.) | 6.39% p.a. (7.72% p.a.) | 6.39% p.a. (7.58% p.a.) |
| With package and 70% LRV discounts | 5.79% p.a. (6.26% p.a.) | 5.89% p.a. (6.27% p.a.) | 5.99% p.a. (6.29% p.a.) | 6.09% p.a. (6.34% p.a.) | 6.09% p.a. (6.35% p.a.) |
Other brands in the Westpac group - St George Bank, Bank of Melbourne, and BankSA - also lifted fixed home loan rates on Wednesday.
HSBC increases fixed rates by 0.30%
The international bank (Australia's 10th largest home lender) has lifted its range of fixed home loan rates by up to 0.30%, including its owner occupier and investor packaged products.
HSBC's new best rate is 5.74% p.a. (6.03% p.a. comparison rate*), advertised for package borrowers with LVRs under 60% fixing for two years and making P&I repayments.
HSBC's package loans come with an annual fee of $390.
P&N Bank/BCU Bank raise fixed rates by 0.35%
The Western Australian-based P&N Bank and its east coast partner BCU Bank raised fixed home loan rates for both owner occupiers and investors.
The best new rate in their stable is now 5.74% p.a. (5.81% p.a. comparison rate*) for owner occupiers with an LVR of up to 80% fixing for one year.
Their one- to five-year fixed rates largely remain below the 6% mark, even for owner occupiers with LVRs up to 95% as long as they're fixing for between one and three years.
Bendigo, Mutual Bank go the other way on variable rates
Bendigo Bank shaved 10 basis points off its online Express Variable home loan on Friday, taking the new rate to 5.54% p.a. (5.67% p.a. comparison rate*).
It applies to owner occupier refinancers with LVRs up to 80% and making P&I repayments.
See also: Refinance home loan rates
Bendigo had passed on the 25-basis point RBA cash rate hike to its variable loans on 11 February.
Hunter-based The Mutual Bank also dropped a couple of its variable package home loan rates by a substantial 1.54%.
The new owner occupier rate is 5.69% p.a. (6.06% p.a. comparison rate*) for those with LVRs up to 95% with an investor rate of 6.09% (6.46% p.a. comparison rate*) for LVRs up to 90%.
Both rates apply to those making P&I repayments and taking out a package home loan with an annual fee of $395.
The Mutual Bank passed on this month's cash rate hike to its variable rates earlier in the week and also raised some of its fixed home loan rates by up to 25 basis points.
It's best fixed rate is 5.39% p.a. (6.09% p.a. comparison rate*) for owner occupiers fixing for two years as part of a package home loan.
Other rates movers
- Regional Australia Bank lifted fixed and investment fixed home loans by up to 0.24%
- There was no half-measures at IMB Bank, with its residential and investment fixed-rate home loans jumping by up to 0.50%
- BankVic increased its fixed and investment fixed loans by up to 0.31%
- Queensland Country Bank increased fixed rate loans for owner occupiers and investors by up to 0.40%
- Partner banks Qudos Bank and Bank Australia increased their fixed owner occupier and investment rates by up to 0.10%
- Bank Orange lifted Premium fixed and Premium Investment loans by up to 0.20%
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.95% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
