Shock as banks raise variable rates, 53 further: Full list

Two lenders have started raising variable interest rates while more than 50 banks have raised fixed mortgage rates, less than two weeks before the RBA’s key meeting on 3 February.

In most cases, 53 Australian lenders have increased their home loan rates since the Reserve Bank meeting on December 9 – including all four of the country’s biggest banks by 70 points, according to exclusive Canstar data up to Thursday January 21.

In a development related to a number of mortgage holders, two lenders have broken up in the past week, increasing the variable rates of six holders and investors by an average of 0.1 basis points, Canstar’s weekly roundup found.

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Heritage Bank and People’s Choice are the only lenders to have raised variable rates by half of the Reserve Bank’s rate hike – significant ahead of February’s monetary policy meeting.

Canstar.com.au data manager Sally Tindall said “when the RBA Governor announces that a rate hike could be on the cards, as he did back in December, banks are taking notice”.

“More than half of the lenders on the Canstar database have increased by at least one fixed rate since the last RBA board meeting, including all of the big four banks,” he said.

The last time RBA Governor Michele Bullock agreed to raise rates was on 7 November 2023 by 25 points (to 4.35 percent) – due to the failure to contain inflation which he considers “still too high” when it is expected to be 3.5 percent by the end of 2024.

Much will depend on next week’s inflation data for December (released on January 28), with the current rate of inflation falling to 3.4 percent in November from 3.8 percent last month but above the RBA’s 2-3 percent target. The biggest contributor was housing which rose by 5.2 per cent in the year – as the RBA tried to cool the market.

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The Commonwealth Bank went hard on fixed rates on January 15, breaking its three-year benchmark rate by 70 basis points to 6.04 per cent – more than $200 extra a month for some borrowers. Macquarie Bank also raised rates by 0.25 per cent across the board – its second increase in six weeks.

“Fixed rates starting with ‘4’ are now set for themselves. Only 12 lenders offer at least one rate below 5 percent, down from 40 three months ago,” said Ms. Tindall.

“This is the first step for the banks to deal with the peak in 2026. This is another signal that borrowers need to start preparing.”

ANZ, NAB and Westpac are all also listed, along with their subsidiaries Bank of Melbourne, BankSA and St. George but also regional banks, credit unions and foreign banks – all again paid their prices.

CBA and NAB both forecast a rate rise of 0.25 per cent on February 3, with Citi economists expecting two hikes this year, although the market remains uncertain – with the ASX rate tracker pricing in just 25 per cent of a rise to 3.85 per cent and a 75 per cent chance the RBA will hold.

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

“Although the RBA is going to great lengths to remind us that there is no dataset or number in its decision-making that it relies on, next Wednesday’s quarterly inflation results are important to these calculations,” he said.

“If inflation gets the concrete moving in the right direction, it might be enough to stop the hike in the first meeting of 2026. If it shows that it’s treading water, then there’s going to be some tough talks around that boardroom table and we could very well see a hike.”

He said for owner-occupiers with a variable rate, the average is 5.52 percent — but borrowers with a good record should aim for or below the 5.25 percent rate — with more than 40 lenders offering at least one variable rate below that mark right now.

“Now is the time to review your current mortgage and challenge your lender for a better rate, as the disparity between market leaders and losers increases, and loyalty rarely pays,” Ms Tindall said.

“For those still hoping for a fix below 5 per cent, you’re not missing the boat entirely, but the clock is ticking. Fixed rates below 5 per cent may be pushed into the past by the time the next RBA decision comes.”

Ms. Tindall said that although the window is being closed, borrowers should not cut their armpits by looking at everything.

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

According to Canstar figures, an interest rate rise of just 0.25 per cent would see repayments on a $600,000 mortgage jump by $90 a month, while a $750,000 loan would increase by $112, and a $1 million loan would face an extra $150 a month.

Ms Tindall urged borrowers to check their household budgets by pressing further potential increases to ensure their rainy day buffer is more than just a drop in the bucket.

EXCLUSIVE: FULL LIST OF SHOWS INCLUDED:

(Prices adjusted on 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

The 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

The 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

Bank of Summerland

Suncorp Bank

Teachers Mutual Bank

Mutual Bank

In the bank

UniBank

Unity Bank

At the top

Westpac

(Source: Canstar.com.au – 21/01/2026)

(Based on landlord and investment loans on the Canstar database, available for any loan amount and LVR).

(Prices variable 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 plus principal and interest payments and/or interest payments only on the Canstar website. Excludes introductory and first-time home loans only).