Shock as banks hike variable rates, 53 move on fixed: Full list

Two lenders have begun shock variable interest rate rises while over 50 banks have hiked fixed home loan rates, less than a fortnight from the RBA’s crucial February 3 meeting.

In a mass repricing, 53 Australian lenders have moved on fixed home loan rates since the Reserve Bank’s December 9 meeting – including all four of the country’s biggest banks by as much as 70 basis points, according to exclusive Canstar data to Thursday January 21.

In a concerning development for the vast bulk of home loan holders, two lenders have cracked in the past week, raising six owner-occupier and investor variable rates by an average of 0.1 points, Canstar’s weekly wrap found.

MORE: $217m space deal to launch sleepy Aussie town into orbit

Clive Palmer’s $215m legacy grows as daughter breaks rank

RBA’s target inflation band is 2-3 per cent. Source: RBA

---

Heritage Bank and People’s Choice were the lenders who increased variables by what amounts to half a rate rise by the Reserve Bank – significant for its timing so close to the February monetary policy meeting.

Canstar.com.au data insights manager Sally Tindall said “when the RBA Governor announces a cash rate hike could be on the cards, as she did back in December, banks take notice”.

“Well over half of the lenders on the Canstar database have hiked at least one fixed rate since the last RBA board meeting, including all four big banks,” she said.

The last time RBA Governor Michele Bullock agreed to hike rates was on November 7, 2023 by 25 basis points (to 4.35 per cent) – due to the failure to contain inflation which she considered “still too high” when it was expected to be around 3.5 per cent by the end of 2024.

A lot will hinge on next week’s December inflation data (released January 28), with the current inflation rate dropping to 3.4 per cent in November from 3.8 per cent the previous month but still above the RBA’s 2-3 per cent target. The largest contributor was housing which rose 5.2 per cent annually – at a time the RBA is trying to cool the market.

MORE: More expensive than Sydney: Qld rent hits record high

$398k wiped out: Aus suburbs where home prices fell the most

The amount people are having to borrow for owner-occupier dwellings has been steadily climbing. Source: ABS.

---

Commonwealth Bank went hardest on fixed rates on January 15, smashing its three-year fixed rate up 70 basis points to 6.04 per cent – which amounted to over $200 extra per month for some borrowers. Macquarie Bank also lifted rates 0.25 per cent across all fixed terms – its second hike in six weeks.

“Fixed rates starting with a ‘4’ now have a target on their backs. Just 12 lenders are offering at least one rate under 5 per cent, down from over 40 just three months ago,” Ms Tindall said.

“This is a pre-emptive move by the banks to counter a higher cash rate in 2026. This is yet another signal that borrowers need to start getting prepared.”

ANZ, NAB and Westpac are all also on the list, plus their offshoots Bank of Melbourne, BankSA and St. George but also regional banks, credit unions and foreign banks – all of whom have repriced their offers.

CBA and NAB are both predicting a 0.25 per cent rate rise on February 3, Citi economists expect two hikes this year, though the market remains unconvinced – with ASX rate tracker pricing in just a 25 per cent chance of an increase to 3.85 per cent and a 75 per cent chance the RBA will hold.

Next Wednesday’s quarterly inflation results are crucial, Ms Tindall said.

“While the RBA goes to great lengths to remind us there’s no one dataset or number its decision-making rests upon, next Wednesday’s quarterly inflation results are critical to the equation,” she said.

“If inflation makes a concrete move in the right direction, it’s likely to be enough to ward off a hike at the first meeting of 2026. If it shows it’s treading water, then some tough conversations will be had around that boardroom table and we could well see a hike.”

If the RBA increases the cash rate target this year it will be the first time it will have done so since November 7, 2023.

---

She said for owner-occupiers on a variable rate, the average is 5.52 per cent – but borrowers with a decent track record should be aiming at or below a 5.25 per cent rate – with over 40 lenders offering at least one variable rate under that mark right now.

“Now is the time to audit your current home loan and challenge your lender for a better rate, as the disparity between market leaders and laggards is widening, and loyalty rarely pays,” Ms Tindall said.

“For those still hoping to fix under 5 per cent, you haven’t missed the boat entirely, but the clock is ticking. Fixed rates under 5 per cent could be relegated to the past by the time the next RBA decision comes around.”

Ms Tindall said even though the window is closing, borrowers should not cut corners in their due diligence.

“Fixed rates come with plenty of extra rules and caveats, such as caps on extra repayments, often no access to an offset account and break fees if you want to get out early. These are all things you’ll need to weigh up before you lock in.”

According to Canstar calculations, just one 0.25 percentage point interest rate hike would see a typical $600,000 mortgage repayment jump by $90 a month, while a $750,000 loan would increase by $112, and $1 million mortgages would face an extra $150 a month in costs.

Ms Tindall urged borrowers to stress-test their household budgets against another potential increase to ensure their rainy-day buffer is more than just a drop in the bucket.

EXCLUSIVE: FULL LIST OF LENDERS THAT HIKED:

(Fixed rates December 10, 2025 to January 21, 2026)

ANZ

Aussie

Australian Military Bank

Australian Mutual Bank

Auswide Bank

Bank Australia

Bank First

Bank of China

Bank of Melbourne

BankSA

BCU Bank

Bendigo Bank

BOQ

Commonwealth Bank

Community First Bank

Easy Street Fin Services

Firefighters Mutual Bank

Firstmac

G&C Mutual Bank

Geelong Bank

Great Southern Bank

Health Professionals Bank

Heritage Bank

Homestar Finance

Horizon Bank

HSBC

Hume Bank

Illawarra Credit Union

IMB

ING

loans.com.au

Macquarie Bank

ME

MyState Bank

NAB

P&N Bank

Pacific Mortgage Group

People’s Choice

Police Bank

Police Credit Union

Qudos Bank

Queensland Country Bank

RACQ Bank

St George Bank

Summerland Bank

Suncorp Bank

Teachers Mutual Bank

The Mutual Bank

Ubank

UniBank

Unity Bank

Up

Westpac

(Source: Canstar.com.au – 21/01/2026)

(Based on owner occupier and investment loans on Canstar’s database, available for any loan amount and LVR).

(Variable rates January 12 to 18, 2026)

Heritage Bank

People’s Choice

(Source: Canstar.com.au: Based on owner-occupier and investment loans available for $600,000, 80% LVR and principal & interest and/or interest-only payments in Canstar’s database. Excludes introductory and first homebuyer only home loans).