21 Lenders Have Cut Fixed Rates — What Borrowers Should Know

NAB and Firstmac are among 21 lenders to cut fixed rates since June, signalling markets believe the cash rate has peaked.

If you've been watching fixed mortgage rates and wondering whether to act, the market is sending a clear signal: lenders are moving rates lower ahead of the Reserve Bank's next decision.

NAB became the latest major bank to cut fixed rates this week, trimming select owner-occupier products by up to 0.20 percentage points. Its two-year fixed rate now sits at 6.34%, down from 6.54%, while its one-year rate eased 0.05 percentage points to 6.44%. According to Australian Broker, the move puts NAB firmly in line with a broader market trend that has been building since the start of June.

The Scale of the Cuts: 21 Lenders and Counting

NAB is far from alone. Rate tracking data shows 21 lenders have cut at least one fixed rate since 1 June, compared with just 11 that have lifted a rate over the same period. ANZ and Macquarie were both among the lenders trimming pricing recently, while Westpac was one of the few to add 0.05 percentage points to some fixed terms.

Among the big four, ANZ currently holds the lowest fixed rate on offer at 6.29% for a two-year term. CBA, NAB, and Westpac are all clustered at 6.34% for the same term.

Non-bank lenders have been moving aggressively too. Firstmac cut its fixed and variable rates across the board this week, with its five-year fixed rate seeing the deepest reduction — down 40 basis points to 6.99% per annum for owner-occupiers and 7.19% for investors. Two-year rates were trimmed by 15 basis points, three-year by 25 basis points, and four-year by 30 basis points. Firstmac also cut all new business variable rates by 10 basis points across its Simple, Standard, and Construction home loan ranges.

Firstmac's chief executive officer Marie Mortimer said the appeal of the five-year fixed product goes beyond the headline rate. "Our five-year fixed loan gives brokers another practical option, while giving customers certainty over their rate and repayments," Mortimer said. She added that the lender's serviceability policy was designed with affordability pressures in mind: "Buying a home is already challenging, and unrealistic serviceability can further limit what customers are able to borrow."

Why Are Lenders Cutting Now?

The shift in fixed pricing reflects where lenders believe the cash rate is heading. The volume of cuts from the majority of lenders since June suggests the market broadly believes the cash rate has either peaked or is very close to it.

The big four banks are split on the outlook, however. Westpac still expects two further 0.25 percentage point hikes — one in August and potentially one in September. CBA, NAB, and ANZ hold a different view, believing the cash rate has already peaked. All four expect rate cuts to begin next year.

The economic backdrop adds to the uncertainty. Westpac's Melbourne Institute Leading Index fell to a six-month annualised growth rate of -0.36% in June, down from -0.25% in May — the sixth consecutive below-trend reading and the weakest pace since late 2023, when quarterly GDP growth last stalled. The index has swung sharply from +0.36% in December to -0.36% now, a move of 0.72 percentage points, with more than half of that shift linked to the narrowing gap between short- and long-term interest rates following the RBA's recent decisions.

Westpac's head of Australian macro-forecasting Matthew Hassan noted that trimmed mean inflation — the RBA's preferred underlying measure — rose to 3.6% in the year to May, up from 3.4% in April. Headline CPI eased slightly to 4.0%, but both figures remain above the RBA's 2–3% target range. Hassan said the June quarter CPI update, due 29 July, will be the critical data point ahead of the RBA board meeting on 10 and 11 August.

What This Means for Borrowers

Despite the recent cuts, fixed rates remain elevated. Even the cheapest rates still start with a '6', which means most borrowers on a variable rate are not facing an obvious case to switch on price alone. The decision to fix should hinge on whether you value repayment certainty over the flexibility of a variable loan.

If certainty is the priority — perhaps because you're on a tight budget and can't absorb further rate rises — a two- or three-year fixed term may make sense while fixed pricing is moving downward. If you expect rates to fall significantly over the next couple of years, staying variable lets you capture those reductions without paying break costs.

For borrowers who are refinancing, the current environment offers a useful window. Lenders are competing actively, and that competition shows up in pricing, serviceability assessments, and product features. It's worth exploring your refinance options now to see whether you're still on the best deal available.

If you're unsure how much you'd save by switching lenders or products, our refinance savings calculator can model the numbers in minutes. One further watchpoint: if the July CPI data comes in hot on 29 July, the RBA may yet raise rates at its August meeting, which would push variable rates higher while putting further downward pressure on fixed pricing as longer-term rate expectations adjust. The fortnight ahead is a pivotal one for Australian mortgage holders.