Where rates stand (early November 2026)
The Reserve Bank lifted the cash rate in February, March, May, September and November 2026, taking it from 3.60% to 4.85%. Lenders passed the September rise on in full from 9 October, and Canstar estimated the average owner-occupier variable rate at 6.49%, with the cheapest lenders from 5.89%. The 3 November rise had not yet been passed on when we checked; in full, it would take the average to about 6.74%. On the fixed side, every big-four lender raised fixed rates in October: ANZ’s 1- and 2-year rates of 6.49% were the lowest of the four, while NAB’s 2-year rate reached 6.81%. A handful of smaller lenders still offered fixed rates below 6% (the lowest on Canstar was 5.79% for one year). The RBA’s next decision is at 2:30pm AEDT on Tuesday 8 December 2026.
Two-year cost comparison on $600,000
| Scenario | Rate | Monthly | 2-year repayments |
|---|---|---|---|
| Variable, before Nov rise | 6.49% | $3,788 | $90,923 |
| Variable, Nov rise passed on | 6.74% | $3,888 | $93,302 |
| Variable, one more rise | 6.99% | $3,988 | $95,707 |
| Fixed 2 yrs (ANZ low) | 6.49% | $3,788 | $90,923 |
| Fixed 2 yrs (NAB) | 6.81% | $3,916 | $93,973 |
Fixing at 6.49% costs the same as today’s average variable rate. Once lenders pass on the November rise, variable borrowers would pay $99 a month more than the ANZ fixed rate. If rates later fall, the variable borrower wins. Fixing at 6.81% only pays off if variable rates rise by more than 0.3 points and stay there.
What you give up when you fix
- Break costs: leave a fixed loan early (sell, refinance) and you may pay an economic break cost if rates have fallen since you fixed — sometimes thousands of dollars.
- Extra repayment caps: many fixed loans allow only $10,000–$30,000 of extra repayments a year.
- Limited offset: few fixed loans offer a full 100% offset.
- Revert rate: when the fixed term ends the loan rolls to the lender’s standard variable rate, often well above its best new-customer rate — diarise the expiry date.
Split loans: the middle path
A split loan fixes part of the balance and leaves the rest variable. A 50/50 split on $600,000 gives payment certainty on half while keeping an offset and unlimited extra repayments on the other half. Many borrowers fix the amount they could not afford to see rise, and keep variable the amount they plan to pay down quickly.
Who should fix?
Fixing suits households with little buffer, a tight budget (for example on one income during parental leave), or who simply value certainty. Variable suits borrowers who make extra repayments, use an offset, may sell within the fixed term, or think rates are near their peak. Neither is a bet you can reliably win: fixed rates already price in the rate rises markets expect.
Whichever you choose, remember that the bank assesses your application at the higher of the loan rate plus 3 points — 9.49% on the average variable rate — so your borrowing power is similar either way.
FAQ
Should I fix my home loan in November 2026?
It depends on your buffer and plans. Big-four 1–2 year fixed rates (6.49%–6.81%) are close to or above the 6.49% average variable rate, so fixing mainly buys certainty against further RBA rises. This is general information, not advice.
What is the difference between fixed and variable home loans?
A fixed rate stays the same for an agreed period (usually 1–5 years); a variable rate moves with the lender’s pricing, usually following RBA cash-rate changes. Variable loans normally allow unlimited extra repayments and a full offset; fixed loans often do not.
What are break costs on a fixed loan?
If you repay or refinance a fixed loan early and wholesale rates have fallen since you fixed, the lender can charge an economic break cost to cover its loss. It can be large on big loans with long fixed terms remaining.
Can I split my home loan between fixed and variable?
Yes. Most lenders allow a split loan, fixing part of the balance and leaving the rest variable with offset and extra-repayment features.
What happens when my fixed rate ends?
The loan reverts to the lender’s standard variable rate, which is often higher than its new-customer rates. Ask for a rate review or compare refinancing offers before expiry.
Related home loan guides
Assumptions & sources
- RBA cash rate target 4.85%: raised 0.25 points on 3 November 2026, effective 4 November (the Monetary Policy Board voted 6–3). It was the fifth rise of 2026, after February, March, May and September. The Board’s next decision is at 2:30pm AEDT on Tuesday 8 December 2026.
- Average owner-occupier variable rate (P&I) 6.49%: Canstar estimate once the September rise was passed on (29 September 2026), in line with RBA Table F6 — new owner-occupier variable loans averaged 6.23% in August 2026, before the rise. Canstar’s average advertised rate across its whole database was 6.75% (13 October 2026) and the lowest variable rate was 5.89% (20 October 2026). As of 3 November no big-four bank had announced how it would pass on the November rise; passed on in full, it lifts the average to about 6.74%.
- Fixed rates: big-four 1–2 year fixed rates ranged from 6.49% (ANZ) to 6.81% (NAB 2-year) in October 2026; the lowest fixed rate on Canstar was 5.79% (1-year).
- APRA serviceability buffer: 3 percentage points above the loan rate (kept unchanged in APRA’s May 2026 review). From 1 February 2026 no more than 20% of a bank’s new owner-occupier lending (and separately investor lending) may be at a debt-to-income ratio of 6 or more.
- LMI: indicative full-doc premiums from one lender’s table published by Home Loan Experts (updated 18 May 2026); insurers price individually and state stamp duty on the premium may apply (none in NSW).
- 5% Deposit Scheme (First Home Guarantee): Housing Australia rules from 1 October 2025 — unlimited places, no income caps; Darwin cap raised to $750,000 from 1 July 2026.
- Repayments use standard amortisation (monthly, fortnightly or weekly compounding to match the payment) with the rate held constant for the whole term; real loans calculate interest daily and rates change.