In a bold pre-emptive strike just days before the Reserve Bank of Australia’s next cash rate decision, ANZ has dramatically increased its fixed mortgage rates by up to 0.25 percentage points.
The decisive move has pushed the majority of ANZ’s most competitive fixed rates beyond the 6.00 per cent mark, leaving only the one-year term just shy at 5.99 per cent.
The adjustment by ANZ is not an isolated incident.
Rate tracking by Canstar.com.au reveals that 26 lenders have hiked at least one fixed rate in the last fortnight, including institutions such as Bankwest, Ubank, Heritage Bank, and RACQ. As a direct consequence, the average two-year fixed rate is now 0.21 percentage points higher than the average variable rate.
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It represents a significant shift from the beginning of the year, when fixed and variable rates were generally on par.
Among the ‘Big Four’ banks, NAB currently offers the lowest fixed rate, with a one-year term available at 5.74 per cent.
Big four bank, ANZ, has today hiked fixed rates by up to 0.25 percentage points, ahead of Tuesday’s cash rate decision.
Source: Canstar
However, the overall landscape for competitive fixed rates is rapidly diminishing.
The lowest fixed rate available on Canstar.com.au is now 5.24 per cent from Southern Cross Credit Union, applicable for both one and two-year terms.
As a result of the rate hikes, just four lenders are still offering at least one fixed rate under 5.40 per cent. At the start of the year, it was 62.
Sally Tindall, Canstar.com.au’s data insights director, commented on ANZ’s move, stating, “ANZ has jumped the gun on the RBA, lifting fixed rates just four days out from the central bank’s next decision.”
She further explained that “fixed rates are typically the early warning signal for where rates are headed. When they start creeping up before an RBA meeting it’s a sign lenders are pricing in a hike before it materialises.”
Source: Canstar
Source: Canstar
Tindall also noted that the fact the majority of ANZ’s fixed rates now sit above 6.00 per cent will feel like a “psychological shift for borrowers.”
With many economists increasing their cash rate hike expectations due to high inflation and soaring petrol prices, some borrowers may be contemplating fixing their rates.
Tindall advises, “If that’s you, don’t panic. Walk through the decision with a calm and clear head, noting the risks on both sides and the extra rules and restrictions that come with locking in your rate.”
While the cash rate could rise in the coming weeks, she also acknowledges that global events could potentially lead the RBA to revert to cuts in the future.
Despite the closing door on many competitive deals, with only a handful of lenders still offering rates under 5.40 per cent, shopping around remains crucial for borrowers, regardless of whether they choose a fixed or variable rate.
This article was originally published on 13 Mar 2026 at 12:15pm but has been regularly updated to keep the information current.
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