Sydney, April 24, 2026, 07:06 (AEST)
Westpac Banking Corporation bumped up fixed home-loan rates for the second time in just three weeks, tacking on 15 basis points—so, a 0.15 percentage point jump—to one- to five-year owner-occupier fixed terms. Its lowest fixed rate now sits at 6.29% for two years. Canstar noted that since the March RBA decision, all four major banks have pushed up fixed rates, with both Westpac and National Australia Bank hiking twice. “Fixed rates are on the move again,” said Canstar Data Insights Director Sally Tindall. Canstar
Timing is key here, with Australia’s cash rate sitting at 4.10% since March 18. The Reserve Bank of Australia is next scheduled to weigh in at 2:30 p.m. Sydney time on May 5. That cash rate—essentially the overnight benchmark for interbank lending—ultimately shapes both mortgage and deposit rates.
Westpac is quoting discounted owner-occupier fixed rates at 6.39% for one year, 6.29% over two years, 6.49% for three, then 6.69% if you lock in for four or five years—assuming customers meet criteria for the package and LVR discount. Loan-to-value ratio, or LVR, means the loan amount relative to the property’s value.
Westpac heads into the next RBA meeting with a two-year rate that’s among the leaner offers from the major banks, though the days of widespread sub-6% deals from earlier this year are gone. For borrowers, the message is clear enough—banks are bracing for higher funding costs ahead of the policy call.
Westpac’s economists, led by Chief Economist Luci Ellis, said in their April market outlook that the RBA had already started raising rates before the Middle East shock hit. They expect the central bank to tighten again, aiming to head off the risk that higher fuel prices bleed into broader inflation. The group is calling for three more 25-basis-point hikes in May, June, and August. By later this year, they see trimmed mean inflation holding close to 4%, GDP growth cooling to roughly 1%, and unemployment edging up toward 5%.
Westpac’s rate hike comes on the heels of a more hawkish tone to investors earlier this month. In its ASX statement, the bank warned that the energy market’s supply shock would likely drive up inflation and interest rates, creating a tougher setting for certain customers. That outlook prompted Westpac to book fresh credit provisions—funds reserved for potential bad loans—with energy-intensive industries specifically called out.
The update pointed to mounting pressure within the bank. Westpac reported that its Treasury and Markets net interest margin dropped to 7 basis points in the second quarter, down from 15 basis points in the first. The bank also noted that transaction costs linked to its planned RAMS mortgage portfolio sale will trim reported net profit after tax by A$75 million.
The outcome is still up in the air. Back in March, Ellis pointed out the risks are two-sided: if fuel supply rebounds quickly, inflation pressure could ease; but if the war drags, higher costs might seep further into local prices. That’s the central uncertainty for Westpac’s mortgage stance — should the RBA hold rates, the bank’s fixed offerings lose some of their edge. If inflation keeps rising, the repricing will look more like foresight than overreach.
Westpac reports first-half numbers Tuesday, May 5. Eyes will be on whether loan growth and tighter costs manage to counter softer market income, bigger provisions, and RAMS’ continued drag. Borrowers are also tuned in, with the RBA handing down its rate decision the same day—any shift could hit mortgage costs.
