CBA and ANZ hike fixed home loan rates ahead of June RBA decision

Collage of a man walking a white increasing line on a yellow field.

On the heels of NAB and Westpac’s rate hike announcements only last week, the rest of the Big Four banks have joined in the frenzy. Today, Commonwealth Bank and ANZ escalated interest for their fixed rate owner-occupied home loans by as much as 0.80%.

CommBank made the steepest adjustments, moving up 1 and 2 year terms by 60 basis points and 3, 4, and 5 year terms by 80 bp. The change eliminates rates under 2% for its lowest fixed products.

The table below shows the new fixed rates for CommBanks’s basic Fixed Rate Home Loan for owner-occupied mortgages with P&I repayments (LVR < 95%).

CommBank Fixed Rate Home Loan - 3 June 2022

TermIncreaseNew rate
1-year
+60 bp3.74% p.a. (4.85% p.a. comparison rate*)
2-year+60 bp4.54% p.a (4.90% p.a. comparison rate*)
3-year+80 bp5.14% p.a (5.04% p.a. comparison rate*)
4-year+80 bp5.34% p.a (5.14% p.a. comparison rate*)
5-year+80 bp5.44% p.a (5.22% p.a. comparison rate*)

By comparison, ANZ was a little more conservative in their changes, only lifting rates between 30-60 bp. 

Here are the new rates for ANZ’s standard Fixed Rate Home Loan for owner-occupied mortgages with P&I repayments (LVR < 80%).

ANZ Fixed Rate Home Loan - 3 June 2022

TermIncreaseNew rate
1-year+50 bp
3.79% p.a. (3.29% p.a. comparison rate*)
2-year+60 bp4.59% p.a. (3.48% p.a. comparison rate*)
3-year+60 bp4.99% p.a. (3.70% p.a. comparison rate*)
4-year+40 bp5.09% p.a. (3.87% p.a. comparison rate*)
5-year+30 bp5.19% p.a. (4.04% p.a. comparison rate*)

Now that all Big Four have made moves on fixed rates, we can see how the pack has reshuffled within the last week. While ANZ and CommBank were previously the cheapest two options of the four, they have now aligned rates with NAB and Westpac.

Big Four fixed rate home loans comparison (OO, P&I) - 3 June 2022

BankProductLowest 2-year rateLowest 5-year rate
WestpacPremier Advantage4.39% p.a. (4.10% p.a. comparison rate*)
4.99% p.a. (4.54% p.a. comparison rate*)
CBAWealth Package4.39% p.a. (4.56% p.a. comparison rate*)5.29% p.a. (5.01% p.a. comparison rate*)
ANZFixed Rate Home Loan4.59% p.a. (3.48% p.a. comparison rate*)5.19% p.a. (4.04% p.a. comparison rate*)
NABTailored Choice4.59% p.a. (4.64% p.a. comparison rate*)5.49% p.a. (5.12% p.a. comparison rate*)

But why the new rate hike scramble? 

We saw something similar back in April, when banks anticipated the Reserve Bank of Australia (RBA) would lift the official cash rate for the first time since November 2020. After the May RBA decision to raise the cash rate by 0.25%, lenders swiftly pushed up their variable products as well, altogether heightening the cost of financing a home loan no matter the type.

With the June 2022 RBA decision looming next week, the Big Four are likely preparing for another hike, which experts expect may drag the cash rate up by another 0.25% - 0.40% to pre-pandemic levels, effectively ending the emergency economic stimulus.

But while the Big Four may be the most popular banking options, they’re far from the only candidates out there. You can see how their new rates compare against smaller competitors, and brace for more rate changes with our new tracker

Fluctuations are inevitable over time, so research is vital for hopeful buyers looking to put all this news in perspective. And don’t forget: refinancing is always an option, too.

RELATED: How to manage higher mortgage repayments

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Rate talk got you worried? Read our guide for putting climbing interest in perspective. You can also use our fixed rate comparison tool to see how different offers stack up.

Compare low interest home loans - last updated 14 August 2022

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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