ANZ's Second Fixed Rate Hike Signals More Pain to Come
The big four have all lifted rates as the RBA cash rate hits 4.6%, with economists split on whether November brings yet another hike.
The Reserve Bank of Australia has pushed the cash rate to 4.6% — its fourth increase of 2026 — and Australia's big four banks have wasted no time passing the full 0.25 percentage point rise on to variable-rate borrowers, effective 9 October 2026. What's less expected is the simultaneous repricing in fixed rates, which signals that markets and major bank economists aren't convinced the tightening cycle is finished.
As MPA Australia reports, ANZ has now raised its fixed home loan rates twice in just over three weeks — the latest increase of up to 0.25 percentage points taking its one-year fixed rate from 6.49% to 6.69%. That makes ANZ, somewhat counterintuitively, the lowest one-year fixed-rate option among the four major banks right now.
What the big four have moved
ANZ is not alone. NAB has also repriced fixed rates upward twice in three weeks. CBA and Westpac have each raised their fixed rates by up to 0.48 and 0.45 percentage points respectively over the same period.
On the variable side, the cheapest of the four major banks is now Westpac at 6.24% for owner-occupiers paying principal and interest. CBA follows at 6.34%, NAB at 6.29%, and ANZ at 6.5%. Beyond the big four, more than 40 lenders have passed on the full 0.25 percentage point increase — among them Bendigo Bank, ING, AMP, Bankwest, St George, and Suncorp. The lowest variable rate among lenders that had announced their new pricing as of 9 October 2026 sits at 5.94%.
If you have not looked at your loan recently, there is a real chance your rate now starts with a 7 — a level that would have seemed unthinkable as recently as 2025. It is worth taking a few minutes to compare the cheapest home loans available today.
Why fixed rates rising matters more than the variable move
When the big four reprice their fixed books sharply upward — multiple times in quick succession — it is rarely random. Fixed rates are set off wholesale funding markets and bond yields, which reflect where markets expect the cash rate to travel. Banks do not reprice fixed products ahead of schedule unless their treasury teams see further hikes coming.
MPA Australia reports that the major bank economists are split on exactly where the cash rate peaks. ANZ and Westpac both expect one additional 0.25 percentage point hike in November 2026, which would take the cash rate to 4.85%. CBA and NAB believe 4.6% represents the peak. Nobody in the major bank camp is pricing in cuts anytime soon.
For borrowers, the practical implication is straightforward: each month spent on a standard variable rate without review is a month spent in a more expensive environment. If ANZ and Westpac are right about November, there may be one more squeeze before any reprieve.
Your repayment won't change overnight — use the window
One detail frequently lost in rate-rise coverage: the increase does not hit your account immediately. MPA Australia notes that CBA gives borrowers at least 20 days' notice before lifting repayments, while Westpac, NAB, and ANZ each give at least 30 days. In practice, many borrowers will not see higher repayments for two to three months.
That delay is not a reason to put the decision off — it is a window of opportunity. If you have not reviewed your home loan in the past 12 months, use this period to run a refinance savings calculation and work out what switching could realistically save you each month.
What to do based on your situation
**If you're on a variable rate:** Pull out your most recent loan statement and confirm your current rate. If it sits above 6.5% and you hold at least 20% equity, you are very likely paying above what the market offers for a clean switch. This is especially true if you rolled onto a default revert rate at any point.
**If you're weighing up fixing:** The window to lock in a low fixed rate has closed for now. One-year fixed rates from the majors are above 6.69%, and the gap between fixed and variable has narrowed sharply. For most borrowers today, fixing buys certainty rather than a discount — factor that into your decision.
**If your fixed term is expiring soon:** Get in front of a broker well before your term ends. The revert rate on an expired fixed loan is often among the highest rates in the market, and many borrowers have more options to refinance than they realise.
**If you're genuinely struggling to meet repayments:** Contact your lender before you miss a payment. Lenders are required to consider formal hardship arrangements. The National Debt Helpline (1800 007 007) connects you with a free financial counsellor who can help you understand your options.
Use our repayment calculator to model the full impact of four rate rises this year on your monthly budget, and check where you stand against current refinance options if the numbers are uncomfortable.
Four cash rate increases in 2026 have shifted what Australians are paying for their mortgages. The time for passivity is over.