Westpac doubles down on fixed hikes as RBA looms

Westpac’s second fixed rate hike in three weeks is sharpening focus on how quickly mortgage rates are being repriced ahead of the Reserve Bank’s next cash rate decision.

The move comes as the major bank’s latest Leading Index points to “sub‑trend” growth ahead, yet its economists still expect a May cash rate hike and “further moves likely in subsequent months.”

Westpac has lifted fixed mortgage rates by 0.15 percentage points across one‑ to five‑year terms, on top of increases of up to 0.45 percentage points earlier this month. Its lowest fixed rate for owner‑occupiers is now 6.29% for a two‑year term, based on Canstar data.

Despite the move, Westpac still holds the sharpest fixed pricing among the big four. On two‑year terms, its 6.29% rate undercuts CBA, NAB, and ANZ, which are all sitting at 6.34–6.39%.

Fixed rates surge across the market

Westpac’s latest change is part of a broader repricing trend. Canstar tracking shows a clear majority of lenders have increased at least one fixed rate since the March RBA decision, including all four majors, with Westpac and NAB both moving twice.

“Fixed rates are on the move again, with some lenders going for a second round of hikes in-between RBA meetings,” Canstar data insights director Sally Tindall said. Tindall noted that, “more than 90% of lenders have moved fixed rates since the last RBA decision,” signalling banks are positioning for further tightening.

On average, the lowest owner‑occupier fixed rates in Canstar’s database have risen by about 0.42–0.43 percentage points across one‑ to three‑year terms in just five weeks. That pace suggests lenders are effectively pricing in more than one potential cash rate increase rather than a single move.

Sub‑6% fixed deals fast disappearing

The pool of sub‑6% fixed mortgage rates has shrunk dramatically in 2026. Canstar figures show just 19 lenders now have at least one fixed rate below 6%, down from 83 at the start of the year. The lowest fixed rate on the market is a 5.49% one‑year offer from Northern Inland Credit Union.

Tindall warned that “opportunities to lock in a more competitive fixed rate are slipping away”, as banks move early to avoid being caught with under‑priced fixed mortgage rates if the RBA tightens more than expected.

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