Fixed Mortgage Rates Are Rising Again: What Australian Borrowers Need to Know in 2026

If you have a mortgage — or are planning to get one — the rapid repricing of fixed home loan rates in April 2026 is something you cannot afford to ignore. Major lenders, including all four big banks, have moved to lift their fixed rates multiple times in just a matter of weeks, signalling that banks are bracing for further tightening from the Reserve Bank of Australia (RBA).

As mortgage brokers, our role is to keep you informed so you can explore your options with all the facts at hand. Here’s a clear breakdown of what is happening and the key questions you should be asking right now.

What Is Happening with Fixed Rates in Australia?

According to recent data from Canstar, more than 90% of lenders in Australia have increased at least one fixed mortgage rate since the RBA’s last cash rate decision in March 2026. Westpac, for example, has lifted fixed rates twice in three weeks, following similar moves by NAB, CBA, and ANZ.

The pace of these increases is significant. On average, the lowest available fixed rates across one- to three-year terms have risen by approximately 0.42 to 0.43 percentage points in just five weeks. This suggests that lenders are not simply adjusting for a single expected rate move — they are pricing in the possibility of multiple RBA increases in the months ahead.

The pool of competitive sub-6% fixed rates has also shrunk dramatically. At the start of 2026, 83 lenders offered at least one fixed rate below 6%. That number has now fallen to just 19.

Note: All interest rates mentioned in this article are for general information purposes only. Comparison rates and specific product terms vary. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Always request a comparison rate before making any decision about a fixed-rate product.

Why Are Lenders Moving Fixed Rates Before the RBA Acts?

This is an important distinction that many borrowers are not aware of: fixed mortgage rates are set by lenders based on their own funding costs and forward-looking expectations — not directly pegged to the RBA’s current cash rate.

When banks’ wholesale borrowing costs rise (influenced by bond markets and global interest rate expectations), they pass those costs on through fixed rate pricing. Banks also build in a buffer to protect themselves if the RBA moves more aggressively than expected.

This is why you can see fixed rates rising even before the RBA officially increases the cash rate — and why borrowers who delay may find themselves with fewer competitive options if they wait.

Fixed Rate vs. Variable Rate: Understanding the Trade-Offs

The right loan structure depends on your personal financial circumstances, and there is no single answer that suits everyone. Here is how the two structures generally work:

Fixed Rate Loans

• Certainty: Your repayment amount stays the same for the fixed period, making budgeting easier.
• Protection: You are insulated from further rate rises during the fixed term.
• Limitations: Most fixed loans restrict or prohibit extra repayments and offset accounts. Break costs can apply if you exit early.
• Risk: If the cash rate falls during your fixed term, you will not benefit from lower variable rates.

Variable Rate Loans

• Flexibility: Most variable loans allow unlimited extra repayments and full offset account access.
• Exposure: Your repayments will rise if the RBA increases rates — as most Australian variable rate borrowers have experienced since 2022.
• Potential benefit: If rates fall, your repayments reduce accordingly.

Split Loans

Some borrowers choose to split their loan — fixing a portion while keeping the rest on a variable rate. This can offer a balance between repayment certainty and flexibility, but adds complexity to the loan structure.

Every borrower’s situation is unique. A mortgage broker can help you model how different structures might perform under various interest rate scenarios.

The Opportunity Cost of Waiting

Canstar’s data insights director, Sally Tindall, noted that “opportunities to lock in a more competitive fixed rate are slipping away” as lenders move early to avoid being under-priced if the RBA tightens more than expected.

While this data suggests urgency, it is equally important not to rush into a decision without fully understanding your financial position. The key questions to ask include:

• How long do I plan to stay in this property?
• Do I have surplus cash I want to use to reduce my loan faster?
• Can my household budget withstand further rate increases if I stay variable?
• What are the break costs if my circumstances change during a fixed term?

What Australian Variable Rate Borrowers Should Be Asking Right Now

If you are currently on a variable rate, now is a good time to review your loan. Consider:

• Is your current lender offering the most competitive rate for your profile? The lending market is highly competitive. Lenders on our panel include 35+ options, and rates and features can vary significantly.
• Is your loan structure still appropriate? A loan that suited you three years ago may not reflect your current life stage or financial goals.
• Are you making the most of available features? Offset accounts and redraw facilities can help reduce the effective interest you pay over the life of the loan.

Mortgage Stress and the Broader Picture

Roy Morgan data indicates that approximately 23.9% of Australian mortgage holders are currently “at risk” of mortgage stress, with 15% classified as “extremely at risk.” These are real pressures affecting real families.

If you are finding it difficult to manage your current repayments, there are options worth exploring — including loan restructuring, refinancing to a more competitive product, or speaking to your lender about hardship provisions. A mortgage broker can help you map out the landscape of options available to you.

How FinHub Can Help You Navigate a Shifting Rate Environment

At FinHub, our team of award-finalist brokers helps Australian borrowers understand their home loan options across a panel of 35+ lenders. We do not tell you what to do — we help you understand your options so you can make an informed decision that suits your circumstances.

Whether you are wondering whether fixing makes sense for your situation, looking to refinance, or just want a clearer picture of the current lending market, a no-obligation consultation with our team is a good place to start.

With $600M+ in loans settled and 350+ five-star Google reviews, our clients trust us to provide honest, thorough guidance — backed by real expertise.

Frequently Asked Questions (FAQ)

Are fixed mortgage rates going to keep rising in 2026?

Lenders are currently pricing in the expectation of further RBA rate increases, which has pushed fixed rates higher across the board. Whether rates continue to rise depends on RBA decisions and global economic conditions. No one can predict future rate movements with certainty. Speaking with a mortgage broker can help you model different scenarios for your specific situation.

Should I fix my mortgage rate right now?

There is no universal answer — it depends on your financial circumstances, how long you plan to hold the loan, your need for flexibility (extra repayments, offset accounts), and your ability to manage potential further rate increases if you stay variable. A mortgage broker can help you weigh the trade-offs without any obligation.

What is a comparison rate and why does it matter?

A comparison rate is a rate that incorporates both the advertised interest rate and most fees and charges associated with a loan. It gives you a more accurate picture of the true cost of a loan. By law, lenders must display comparison rates alongside advertised rates. Always compare on comparison rates, not headline rates alone.

What happens at the end of my fixed rate term?

At the end of a fixed term, your loan automatically reverts to the lender’s standard variable rate — which may be significantly higher than your fixed rate. It is important to review your loan well before the fixed period ends to explore your options, including refixing, switching to a competitive variable rate, or refinancing to a different lender.

What is mortgage stress and what can I do about it?

Mortgage stress is generally defined as spending more than 30% of pre-tax household income on mortgage repayments. If you are under financial pressure, options may include refinancing to a lower rate, extending the loan term, restructuring repayments, or accessing lender hardship provisions. A mortgage broker or financial counsellor can help you understand your options.

Ready to explore your home loan options?

Contact Daniel Nguyen at FinHub — 📞 1300 346 482 | 📱 0430 11 11 88 | ✉️ daniel@finhub.net.au | 🌐 finhub.net.au

No-obligation consultation. We help you explore your options.

Disclaimer: Finance Hub & Networks Pty Ltd | Australian Credit Licence 573164 | ACN 644 141 613. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. This article is general information only and does not constitute financial advice. Any interest rates mentioned are for illustrative purposes and reflect publicly reported data at the time of publication. Comparison rates and specific loan terms will vary. A comparison rate warning: comparison rates are calculated on a loan amount of $150,000 over 25 years. Fees, charges, and your borrowing circumstances will affect the cost of any loan. Please seek professional advice suited to your personal situation.

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