Fixed rates are back in focus after rate rise
One clear change – sub-5% fixed rates have largely disappeared, with most offers now sitting higher as funding costs have risen.
Behind this, bond yields have been trending upward, reflecting expectations that interest rates may stay elevated for longer.Fixed rates don’t move directly with the RBA cash rate – they’re driven more by funding costs and bond yields, which reflect where markets expect interest rates to go next.
What’s happening across loan terms
- Shorter-term fixed (1–2 years) has moved more noticeably, tracking near-term rate expectations.
- Longer-term fixed (3–5 years) has been steadier but has still gradually repriced higher.
- Fixed rates are increasingly being set based on where markets expect rates to go, not where they are today.
What this means now
Fixed rates are less about chasing a lower rate and more about certainty and planning.
That’s why some borrowers are now focusing more on loan structure, not just headline pricing.
I can help you compare fixed, variable and split options and structure your loan around your plans in the current environment.