CBA hikes fixed rates for the second time in three weeks

Customers are urged to turn to smaller banks for the few low rates that remain

CBA hikes fixed rates for the second time in three weeks


By Micah Guiao

The big four seem to be taking turns in hiking fixed rates across the board, with the latest being the Commonwealth Bank of Australia (CBA).

Australia’s largest bank has lifted its fixed rate loans across all terms for both owner-occupiers and investors for the second time in less than three weeks – five times since November – with the highest increase at 0.25%.

Sally Tindall, research director at, said hikes from CBA show the bank is feeling the strain of sustained increases in funding costs made evident with its longer-term fixed rates, which are already much higher than pre-pandemic levels.

The five-year fixed now stands at 3.99%, with the four-year at 3.69% and the three-year at 3.49%.

“It’s hard to believe just five months ago CBA was offering a fixed rate loan below 2%,” Tindall said. “Since then, CBA has hiked six times, raising most of its owner-occupier fixed rates above pre-pandemic levels.

It’s no secret that major banks have long let go of the competition on low fixed rates, she suggested, but other smaller banks are still in the game like Unity Bank, Geelong Bank and Bank First with the lowest owner-occupier rates.

“There are still some relatively-low rates from low-cost lenders, however, in this environment they’re unlikely to stick around for much longer,” Tindall said. “The database shows there is just one two-year rate starting with a ‘1’, and just 14 one-year rates under this benchmark.”

Across the big four, Westpac holds the lowest fixed rates across all its terms in a pool of higher 2s and 3s – but not by a wide margin.

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