The CBA raises fixed rates, signaling a turning of the tide on interest rates.

liveramp in US dollar chart

In another another indicator that "the tide is shifting on interest rates," Australia's largest bank has raised its three-year fixed rate for owner-occupiers. So, if you've been thinking about locking in your interest rate, now might be the time.

We don’t usually write articles about the interest rate movements of specific packages with certain lenders.

However, we thought this one was significant because the Commonwealth Bank (CBA) is the country’s largest home lender, with a market share of almost 25%.

CBA has raised its three- and four-year fixed rates for owner-occupiers paying principal and interest, as well as some interest-only loans, by 0.05 percent and 0.10 percent, respectively.

“This is another example of the tide changing on interest rates for anyone still on the fence about fixing their home loan rate,” Canstar research specialist Mitch Watson says.

We also can’t claim that we weren’t warned.

Fixed-mortgage rates have already achieved, or were close to, their lowest point, according to ANZ senior economist Felicity Emmett, as lenders began boosting their four-year fixed rate packages.

Furthermore, according to Canstar research, 38% of lenders have raised at least one fixed rate in the last two months.

If the RBA hasn't raised the cash rate, why are fixed rates rising?

The Reserve Bank of Australia (RBA) has stated repeatedly that the official cash rate will not be raised until at least 2024.

However, because that date is approaching in three years, banks are starting to modify their three- to four-year fixed rates to avoid potential RBA rate hikes.

“The money market has already factored in [RBA rate] increases,” says Shane Oliver, chief economist at AMP Capital.

“At this point, it’s not having much of an effect on two-year rates.” However, as the year progresses, the potential of rate hikes will begin to affect shorter rates as well.”

So, where do we go from here?

When CBA makes a move, it’s not unusual for several other lenders to follow suit.

So, if you’ve been debating whether or not to modify your rate, it’s absolutely worth contacting us sooner rather than later.

We can walk you through a variety of options, such as locking in your interest rate for two, three, four, or five years, or only locking in a portion of your mortgage (but not all of it).

Get in touch if you’d like to learn more about this – or any of the other subjects discussed in this post.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at

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