- Home lenders are moving to pass on the 25-basis point rise in the cash rate to variable home loan interest rates after the Reserve Bank's decision on Tuesday
- Some have also been active lifting their fixed interest rates this week both before and after the cash rate hike
- The latest rise in the cash rate all but wipes out the market's sub-5% home loan offerings, although a few remain for now
The Reserve Bank delivered its first hike to the cash rate in more than two years on Tuesday.
The markets had priced in a 72% chance of an increase while economists at all big four banks forecasted the 25-basis point rise on the back of rekindled inflation in the Australian economy.
Australia's biggest home lender Commonwealth Bank led its big bank counterparts in announcing a 25-basis point rise to its variable home loan rates soon after the RBA's call.
See RBA rate hike February 2026: Is your lender passing it on? for a running log on lender rate announcements
Many home lenders have since followed in passing on the 25-basis point increase to their home loan customers (although most banks have been notably slower in announcing corresponding savings account increases).
The vast majority of Australian mortgage holders will see their variable home loan rates increase over the next two weeks. (Geelong Bank gets an honourable mention for not passing on the rise to its home loan customers until 27 February.)
But quite apart from the expected 25-basis point increases to variable home loans, a slew of lenders have also taken the opportunity to boost their fixed home loan rates - one by up to 0.80%.
Why are fixed home loan rates rising too?
Fixed home loan rates have been lifting across the market since November last year when it became clear higher-than-expected inflation figures were not an aberration.
Lenders began positioning themselves for a rising interest rate environment, building in cushions to compensate for anticipated increases in wholesale finance costs down the track.
Commonwealth Bank quietly pulled its sub-5% fixed home loan offer in late November and it may be a while before we see it again.
Indeed, Tuesday's rate increase has all but wiped out the market's home loan offerings below 5%.
There are no longer any variable rates to be had in that category and it's likely that the days are numbered for the couple of fixed rate deals that remain for now.
Those looking to lock in a notably low fixed rate are likely now cutting it fine - to say the least - but, of course, what is considered 'low' will depend on how many cash rate hikes are to follow.
NAB economists forecast there will be one more in May but others are not as hawkish.
Which lenders shifted their home loan rates this week?
Even before the RBA made its announcement on Tuesday, half a dozen lenders had announced changes to their fixed home loan rates and there were around a dozen more in the ensuing days.
Bear in mind, these adjustments were apart from the standard 0.25% increases to variable home loan rates many lenders have announced after the cash rate hike.
The summary below features some of the more notable fixed rate movements this week along with the lowest owner-occupier fixed rate currently on offer from each lender:
Bendigo Bank
- Increased Express and Complete owner occupier and investment fixed home loans by up to 0.36%
- Best fixed rate: 5.74% p.a. (5.67% p.a. comparison rate* - one year fixed; 5.70% p.a. comparison rate - two year fixed) principal and interest (P&I) repayments with 60-80% loan-to-value ratio (LVR)
Suncorp
- Increased home loan package fixed rates for owner occupiers and investors by up to 0.75%
- Best fixed rate: 6.14% p.a. (5.95% p.a. comparison rate for LVR 80% or less; 6.20% p.a. comparison rate for LVR 80-90%) fixed for one year as part of Home Package Plus making P&I repayments
AMP Bank
- Increased some of its Professional Package owner occupier and investment fixed-rate loans by up to 0.50%
- Best fixed rate: 5.84% p.a. (6.74% p.a. comparison rate* for one year fixed; 6.66% p.a. for two year fixed) for LVR 80% or less
The Mutual Bank
- Increased some Package and Standard home loan fixed rates by less than 0.25%
- Best fixed rate: 5.19% p.a. (6.98% p.a. comparison rate*) for two year fixed with P&I repayments with Package Home Loan
MOVE Bank
- Increased Everyday and Offset home loan fixed rates for owner occupiers and investors by up to 0.55%
- Best fixed rate: 5.29% p.a. (5.22% p.a. comparison rate*) for two years with LVR up to 95%
Community First Bank
- Increased Go Basic fixed rates for owner occupiers and investors, as well as Boost Package fixed rate for owner occupiers and investors by up to 0.45%
- Best fixed rate: 5.44% p.a. (5.75% p.a. comparison rate*) two year fixed Boost Package home loan rate with P&I repayments, LVR 80% or less. 5.44% p.a. (5.31% p.a. comparison rate*) for one year fixed for Go Basic home loan with P&I repayments, LRV 80% or less
Bank of China
- Increased fixed rate home and investment loans by up to 0.30%
- Best fixed rate: 5.59% p.a. (7.87% p.a. comparison rate* - one year fixed; 7.64% p.a. - two year fixed); P&I repayments, up to 90% LVR
Heritage Bank/People's Choice
- Increased residential and investment fixed home loan rates by up to 0.30%
- Best fixed rate: 5.54% p.a. (7.87% p.a. comparison rate*) for one year fixed, P&I repayments with LVR up to 95%
Regional Australia Bank
- Increased fixed home loan rates for owner occupiers and investors by up to 0.71%
- Best fixed rate: 5.40% p.a. (5.28% p.a. comparison rate*) for one year fixed, P&I repayments with LVR 70% or less
P&N Bank/BCU Bank
- Increased fixed rates for owner occupier and investment home loans by up to 20%
- Best fixed rate: 5.59% p.a. (5.58% p.a. comparison rate*) for two years fixed with LVR 80% or less
Geelong Bank
- Decreased some fixed owner occupier and investment rates by up to 0.90%
- Best fixed rate: 5.39% p.a. (5.73% p.a. comparison rate*) for P&I repayments with 80% or less LVR
Summerland Bank
- Increased Standard Fixed rate home loans for owner occupiers, investors, and first home buyers by up to 0.40%
- Best fixed rate: 5.39% p.a. (5.84% p.a. comparison rate*) one year fixed Special Offer for new borrowers only with LVR 60% or less
Bank First
- Increased Premier Package, Complete Package home loan fixed rates for owner occupiers and investors by up to 0.30%
- Best fixed rate: 5.79% p.a. (5.86% p.a. comparison rate*) Premier Package home loan, P&I repayments, LVR 80% or less
G&C Mutual Bank/Unity Bank
- Increased home loan rates by up to 0.60%, including Investor Advantage, Momentum Advantage, Advantage Home Loans, First Home Buyer loan, Essential Worker Variable loan, and fixed residential home loans.
- Best fixed rate: 5.40% p.a. (5.48% p.a. comparison rate*) fixed for one or two years with P&I repayments and LVR up to 95% (with LMI and subject to approval)
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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. | 6.02% 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 |
