NAB became the first major bank to raise fixed home loan rates since the RBA’s May cash rate decision, lifting its one-year and two-year fixed rates by 0.15 percentage points. It’s a move that tells us something about where the banks think rates are heading — and what borrowers should be thinking about right now.
What happened
NAB’s one-year fixed rate now starts at 6.49% and its two-year at 6.54%. Three-, four- and five-year terms were left unchanged. Among the big four, Westpac currently leads with the lowest fixed rate — a two-year term at 6.29%.
Outside the majors, the picture is tighter. At the start of 2026, 83 lenders offered at least one fixed rate under 6%. Today, just three remain. By contrast, more than 40 lenders still have variable rates starting below 6%, making variable the more competitive option for the vast majority of borrowers right now.
Meanwhile, APRA data released the same day showed Australia’s total residential mortgage book hit a record $2.48 trillion in April — growing by $14.3 billion in a single month despite consecutive rate hikes. Macquarie Bank posted the strongest growth of any lender, with its mortgage book up 27.5% over the past year.
What this means for you
When a major bank lifts fixed rates, it’s usually a signal that it expects the cash rate to stay elevated — or rise further. While most economists expect the RBA to hold in June, the split on what happens after that remains wide. Some see the hiking cycle as done. Others expect one or two more increases later in the year.
For borrowers currently on a variable rate, the gap between the cheapest variable and cheapest fixed rate means variable remains the stronger value proposition in most cases. But if certainty matters to you — particularly if your household budget is stretched — locking in a portion of your loan at a known rate could still make sense as a hedge.
For anyone who hasn’t reviewed their home loan since the hikes began earlier this year, this is a timely prompt. The difference between a rate above 7% and one closer to 6% on a $600,000 loan translates to roughly $350 per month. A quick rate check could put real money back in your pocket.
Talk to a Finance Hub broker — call 0430 11 11 88 or visit finhub.net.au
Source: Canstar, 29 May 2026
Finance Hub and Networks Pty Ltd | ACL 573164 | ACN 644 141 613
Aggregated through Connective Credit Services Pty Ltd, ABN 51 143 651 496, ACL 389328. Credit assistance provided. This page does not constitute financial advice.
