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CBA hikes fixed rates 3 times in 6 weeks

CBA hikes fixed rates 3 times in 6 weeks

Australia’s largest bank, CBA, has hiked fixed rates for the third time in six weeks.

CBA increased its owner-occupier fixed rates by up to 0.30 per cent, while investor fixed rates rose by up to 0.60 per cent.

CBA hikes for owner-occupiers paying principal & interest

Loan termOld rateNew rateChangeDifference in repayment, $500K
1-year fixed

2.34%

2.49%

0.15%

$39

2-year fixed

2.34%

2.59%

0.25%

$65

3-year fixed

2.69%

2.99%

0.30%

$80

4-year fixed

2.89%

3.09%

0.20%

$54

5-year fixed

3.09%

3.39%

0.30%

$82

Source: RateCity.com.au. Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395. Monthly repayments are based on a $500K, 30-year loan over the fixed rate term.

Previous CBA owner-occupier fixed rate hikes:

  • October 15: increased 2- to 4-year rates by 0.10%.
  • November 5: increased 1- to 5-year rates by up to 0.50%.

Fixed home loan rates keep rising

Lenders that have moved at least one rate in the last month (27 Oct to 26 Nov 2021)

Lenders that have cutLenders that have hiked
1 yr fixed

26

34

2 yr fixed

16

56

3 yr fixed

4

64

4 yr fixed

4

43

5 yr fixed

6

60

Variable

58

9

Source: RateCity.com.au. Note some lenders may have moved more than one rate.

RateCity.com.au research director, Sally Tindall, said: “CBA has once again bowed to funding pressures which have soared in recent weeks.”

“Customers waiting in CBA’s queue to have their loan approved who didn’t lock in their rate will be cursing themselves this morning, particularly as CBA has one of the cheapest rate lock fees available,” she said.

“It’s raining rate hikes and the storm is nowhere near over. The flood of fixed rate hikes is likely to keep going as the cost of fixed-term funding continues to rise.

“The number of fixed rates under 2 per cent is dropping rapidly. Six months ago, there were 161 fixed rates under 2 per cent. Today there are just 87 and we expect this number to keep plummeting.

“NAB is the only big four bank with a rate starting with a ‘1’ – its 1-year fixed rate – however this is likely to rise in the next round of the bank’s rate hikes.

“While there are still a decent range of short-term fixed rates under 2 per cent, there are now just three 3-year fixed rates under this mark and no 4- or 5- year rates starting with a ‘1’.

“Surprisingly, Greater Bank is still offering the lowest fixed rate in our records at 1.59 per cent for up to two years, however, this record-low rate is unlikely to see the year out,” she said.

21.11.26 fixed rates under 2.JPG

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1 yr fixed

2.49%

2.24%

1.99% 

2.29%

2 yr fixed

2.55%

2.24%

2.34%

2.39%

3 yr fixed

2.99%

2.59%

2.79%

2.79%

4 yr fixed

3.09%

2.89%

2.89%

2.99%

5 yr fixed

3.39%

3.09%

3.09%

3.19%

Variable

2.29%

2.19%

2.29%

2.29%

Source: RateCity.com.au. Note Rates are for owner-occupiers paying principal and interest, LVR requirements apply for some loans.

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This article was reviewed by Janet Lee before it was published as part of RateCity's Fact Check process.

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