- ANZ and Macquarie Bank cut fixed home loan interest rates this week
- Meantime, Westpac nudged its fixed home loan rates higher
- Fixed interest rates can be a signal of where lenders expect interest rates to head in the future
With the third cash rate increase for 2026 washing through variable home loan rates over the past month, three major lenders have turned their attention to their fixed rates this week.
See also: Fixed-rate vs variable-rate home loan: What's the best?
ANZ and Macquarie have shifted their fixed rates lower while Westpac - whose economists remain bullish on further cash rate increases - nudged some of its fixed rates another five basis points higher.
Unlike variable home loan rates which are tied to Reserve Bank cash rate, fixed home loan rates can be a signal of where lenders expect rates to be in the future.
Macquarie goes big on fixed-rate cuts
Macquarie Bank has made the boldest moves, slashing some its fixed rate home loans by up to 1.15%.
Its best new fixed rate is 6.09% p.a. (6.11% p.a. comparison rate*) for a basic owner occupier home loan fixed for three years with a loan-to-value ratio (LVR) up to 70%.
That currently matches Macquarie's variable home loan rate for borrowers with the same credentials.
The 6.09% p.a. also applies to those wanting to add an offset account to their variable loan, although the comparison rate increases to 6.34% p.a.
See also: Redraw or offset: Which is better?
Macquarie's hefty slicing of its fixed rates for owner occupiers and investors is a sign the bank is confident the Reserve Bank may not be raising the cash rate in the near future.
Macquarie Bank's fixed home loan rates
Here's a selection of Macquarie's fixed rates for owner occupier borrowers making principal and interest (P&I) repayments:
| Interest rate | Comparison rate* | Rate change (%) | |
| 1 year | |||
| ≤ 70% | 6.19% p.a. | 6.12% p.a. | (-0.25) |
| ≤ 80% | 6.24% p.a. | 6.17% p.a. | (-0.25) |
| ≤ 95% | 6.54% p.a. | 7.10% p.a. | (-0.95) |
| 2 years | |||
| ≤ 70% | 6.14% p.a. | 6.12% p.a. | (-0.40) |
| ≤ 80% | 6.19% p.a. | 6.17% p.a. | (-0.40) |
| ≤ 95% | 6.49% p.a. | 7.03% p.a. | (-1.10) |
| 3 years | |||
| ≤ 70% | 6.09% p.a. | 6.11% p.a. | (-0.50) |
| ≤ 80% | 6.14% p.a. | 6.16% p.a. | (-0.50) |
| ≤ 95% | 6.49% p.a. | 6.98% p.a. | (-1.15) |
| 4 years | |||
| ≤ 70% | 6.29% p.a. | 6.19% p.a. | (-0.35) |
| ≤ 80% | 6.34% p.a. | 6.24% p.a. | (-0.35) |
| ≤ 95% | 6.69% p.a. | 7.00% p.a. | (-1.00) |
| 5 years | |||
| ≤ 70% | 6.29% p.a. | 6.20% p.a. | (-0.45) |
| ≤ 80% | 6.34% p.a. | 6.25% p.a. | (-0.45) |
| ≤ 95% | 6.69% p.a. | 6.96% p.a. | (-1.10) |
Macquarie Bank allows up to $10,000 a year in extra payments on a fixed term loan without incurring break costs.
There are also no offset benefits available while the linked loan account is on a fixed interest rate.
ANZ also drops fixed rates
ANZ is on the same page as Macquarie, also dropping its fixed rates on Friday, although its cuts were far more modest.
ANZ has taken between five and 10 basis points off select fixed rates, with a best new rate of 6.29% p.a. (7.05% p.a. comparison rate*) for an owner occupier with 80% LVR fixing for two years and making P&I repayments.
It's perhaps no surprise ANZ economists are forecasting no more cash rate increases in 2026 - a view shared with Commonwealth Bank.
NAB is forecasting one more 25-basis point increase in August while Westpac economists believe there will be two more rate hikes in August and September.
Westpac takes fixed rates higher
It's to be expected Westpac is backing its economists' cash rate outlook, pushing its fixed home loan rates five basis points higher this week.
This includes its standard and Premier Advantage Package fixed rates (offering a 0.20% discount on the standard fixed rate).
Borrowers with up to 70% LVR get an additional 0.10% discount, taking the bank's best fixed rate to 6.34% p.a. (6.78% p.a. comparison rate*) with both a package and LVR discounts.
What are the best fixed rates of the major lenders?
Now seems an opportune time to compare the lowest advertised fixed rates of Australia's five largest home lenders.
The table below compares advertised rates for owner occupier borrowers with 80% LVR and making P&I repayments:
| Bank | Fixed rate | Comparison rate* | Fixed period |
| CommBank | 6.34% p.a. (with package home loan ) | 8.09% p.a. | 2 years |
| Westpac | 6.44% p.a. (with package) | 6.85% p.a. | 2 years |
| NAB | 6.49% p.a. | 7.02% p.a. | 1 year (same headline rate for 3, 4, 5 year terms) |
| ANZ | 6.29% p.a. | 7.05% p.a. | 2 years |
| Macquarie | 6.14% p.a. | 6.16% p.a. | 3 years |
What are other lenders doing?
Outside of the big five, some smaller lenders are also taking their rates lower.
Merger partners P&N Bank and BCU Bank dropped one- and two-year fixed home loan rates by up to 0.25% this week.
Community First Bank, and its Easy Street Financial Services brand, defied the tidal trend in variable rate movements to reduce some of its variable rates by up to 0.15% this week.
Community First's best new variable rate is now 5.94% p.a. (5.99% p.a. comparison rate*) for owner occupiers with up to 80% LVR and making P&I repayments.
Elsewhere on the market, the last of the smaller lenders were passing on last month's cash rate increase to their variable rate products.
Is it a good time to fix your interest rate?
With three cash rate increases so far in 2026, it's fair to say the ship may have already sailed for those looking to save on interest costs by fixing their interest rates.
See also:
But that's not to say there won't be more cash rate increases to come - as we've seen, the big four banks are divided 50-50 on this outcome.
Yet there's wide agreement there won't be a cash rate increase this month, given some less than optimistic data on jobs and the broader economy.
The general sentiment is that interest rates will begin a downcycle by the second half of 2027, suggesting lenders may be looking to lower fixed rates sometime in the near future in their bid to stay in the game.
Saving on interest payments is one reason borrowers might look to fix their home loan interest rate but some can feel more comfortable knowing what their mortgage payment is going to be for a set period.
See also: Mortgage Repayment Calculator
It's wise to research where the experts believe interest rates are heading and take into account broader economic and global conditions in any decision to fix your home loan interest rate.
At the end of the day, there are many 'experts' who get interest rate movements entirely wrong so seeking professional financial advice may help you determine the best path for your circumstances.
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| 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 |
