Every Big 4 Bank Just Pushed Fixed Rates Above 6%. Here's the Refinance Math for Landlords (April 2026)

This article is general information only and does not constitute financial or tax advice. Consult a qualified tax professional for advice specific to your situation.

On April 2, 2026, Westpac became the last of Australia's four major banks to push its advertised fixed rates above 6%. According to Canstar data insights director Sally Tindall, it is the first time in a long stretch that no Big 4 fixed rate starts with a five.

For landlords, that is more than a headline. If your fixed rate is rolling off in the next few months, the pricing you refix into has shifted noticeably in a matter of weeks. If you are still on variable, the case for locking in looks very different today than it did in February. And if you are holding two or more investment properties, the cash flow consequences compound fast.

Here is what actually happened, what the new numbers mean for a typical refinance, and the questions worth asking before you commit to a fix.

What Just Happened

Four banks, roughly two weeks, one direction.

The chain started after the RBA's March 17 monetary policy decision, which lifted the cash rate from 3.85% to 4.10% on a split 5 to 4 vote. Variable rate pass-throughs followed almost immediately: CBA, NAB and ANZ all applied the full 0.25% increase from March 27, with Westpac following on March 31. That part was routine. Fixed rates are a different signal.

In the days and weeks that followed, every Big 4 bank repriced fixed rates upward. Canstar's running tally of the moves looks roughly like this:

• NAB hiked owner-occupier fixed rates by around 0.30 to 0.35 percentage points across multiple terms, with its lowest 1-year fix settling at 6.04% and its lowest 2-year at 6.09%.
• CBA hiked fixed rates by around 0.30 percentage points across terms, with its lowest 1-year at 6.49% and 2-year at 6.34%.
• ANZ also moved fixed rates higher, with its lowest 1-year sitting at 6.34% and 2-year at 6.39%.
• Westpac, the last holdout, moved on April 2 with hikes of up to 0.45 percentage points. Its lowest 2-year fix landed at 6.14%, still the sharpest 2-year pricing in the Big 4 despite the increase.

Those are all owner-occupier advertised rates, which is how Canstar publishes its comparison tables. Investor fixed rates are typically priced around 20 to 30 basis points higher than owner-occupier rates on equivalent terms, so the practical investor pricing range across the Big 4 right now sits somewhere between roughly 6.2% and 6.6% for 1-year to 3-year fixes, depending on lender and loan-to-value ratio.

Beyond the Big 4, the broader market has moved in the same direction. Canstar reports 74 lenders have hiked at least one fixed rate since the March RBA decision, with 38 of them hiking since April 1 alone. Around 40 lenders still have a fixed rate under 6%, compared to 83 at the start of the year.

As Tindall put it, the move "underscores just how quickly the rate cycle has shifted". Expectations are embedded into fixed rate pricing, and the market is clearly bracing for the possibility of more tightening.

What It Means for an Investor Refinancing Right Now

The real question for landlords is not "how high did bank X go?" but "what does my monthly cash flow look like if I refix today?"

The typical pain point is a two-year fix that was set in April 2024 at something in the high fives and is now rolling off into a market where comparable fixes sit 50 to 60 basis points higher. Let us walk through three loan sizes to see what the monthly delta looks like.

All three assume principal and interest, 30 years remaining, rolling from a 5.89% fix to a 6.39% fix. That is a 0.50 percentage point uplift, which is a conservative approximation of what a landlord rolling off a 2-year investor fix might face right now depending on the exact new rate they are quoted.

$500,000 investment loan. Monthly repayment at 5.89% is around $2,963. At 6.39% it rises to around $3,125. That is roughly $161 extra per month, or close to $1,930 per year.

$750,000 investment loan. Monthly repayment at 5.89% is around $4,444. At 6.39% it rises to around $4,687. That is roughly $242 extra per month, or close to $2,900 per year.

$1,000,000 investment loan. Monthly repayment at 5.89% is around $5,925. At 6.39% it rises to around $6,249. That is roughly $322 extra per month, or close to $3,860 per year.

If you own two investment properties with total lending around $1.5 million, the combined hit lands somewhere close to $485 per month, or around $5,800 per year in additional interest costs.

The good news for landlords is that interest on an investment loan is fully deductible. The higher interest you pay goes straight into the deduction column at tax time, which softens the cash flow pain. It does not eliminate it. A dollar of extra interest typically returns somewhere between 30 and 47 cents at tax time depending on your marginal rate, which means you are still funding the remainder out of monthly cash flow. For the mechanics of how this works, see our guide to landlord expenses you can claim and our explainer on negative gearing.

Calculate Your Own Numbers

The scenarios above use representative rates. Your exact position depends on your current fix, the rate you are being offered, your loan balance, and your remaining term. Plug your own numbers in below.

You can also compare against the running impact of the underlying RBA decision using our RBA rate rise mortgage calculator, which focuses specifically on how each 0.25% cash rate move flows through to variable repayments.

Fix vs Float in April 2026

The core question for landlords right now is defensive: pay more for certainty, or stay exposed and hope the next RBA move is down.

The case for fixing. A fix locks in your interest cost for a known period. If you are running close to your serviceability limit, that certainty is genuinely valuable even if you end up "losing" a small amount relative to where variable lands. Fixed rates above 6% are not attractive in isolation, but if you expect any further tightening, a 2-year or 3-year fix at 6.1% to 6.4% caps your downside. You know exactly what your monthly outgoing is, and your deduction forecasting at tax time becomes cleaner.

The case for staying variable. Variable rates sit below advertised fixed rates for most Big 4 products right now. Canstar's April snapshot put Westpac's lowest advertised variable at 5.74%, which is sharper than any Big 4 fixed rate of any term. Variable also preserves flexibility. If rates do fall later in 2026, you benefit immediately. Fixing closes that door.

The hidden cost of fixing. Break fees on fixed loans can be brutal if your circumstances change. If you sell the property, refinance away, or need to make large extra repayments, a fixed loan can cost you thousands in break costs. Variable loans generally allow extra repayments and early payouts without penalty. If there is any chance you will want to sell or restructure in the next two years, account for that before fixing.

A split loan is a middle option. Most Big 4 lenders will let you fix part of your loan and leave the rest on variable. A common approach is to fix 50% to 70% of the balance and leave the remainder variable. You get partial certainty, partial flexibility, and some scope to make extra repayments on the variable portion.

What the May 5 RBA Meeting Could Change

The next RBA Monetary Policy Board meeting is scheduled for May 5, 2026. We will not predict the outcome, and neither should you base your fix decision on a guess. What is useful is knowing how each scenario would reshape the calculation.

• If the RBA holds. Fixed rate pricing may stabilise or even ease slightly if lenders have already overshot. Your current refix quote is probably close to the worst you will see in the near term.
• If the RBA hikes again. Fixed rates may move higher still. Landlords who lock in before the meeting would benefit. The banks have effectively already priced in this scenario, which is part of why fixed rates sit where they do today.
• If the RBA cuts (unlikely but possible). Fixed rates would likely drop within days. Anyone who just locked in at 6.14% for three years would feel the sting.

The March decision was 5 to 4 in favour of hiking, which tells you the board is genuinely divided. That makes the May decision harder to call, not easier. If you are on the fence about fixing, waiting three and a half weeks to see what happens is a defensible position, provided your variable rate is not breaking you in the meantime.

Practical Checklist for Landlords With Rolling Fixed Rates

If you have a fix expiring in the next six months, this is worth running through before you get to your rollover date.

• Know the exact rollover date and revert rate. When your fixed term ends, your loan reverts to your lender's revert rate by default, which is usually well above the sharpest available variable. Do not let the rollover happen passively.
• Get three quotes. Your current bank, one competing Big 4, and at least one non-Big 4 lender. Rate movement across lenders is uneven, and the best deal is rarely the default.
• Compare total cost, not just the rate. Break fees, ongoing fees, annual package fees and any cashback offer all affect the real cost. A 6.24% fix with a $4,000 cashback and no annual fee may beat a 6.14% fix with a $395 annual fee over the term.
• Check your LVR. If your property has appreciated since you took out the loan, your loan-to-value ratio is lower, which can unlock sharper pricing tiers. Many Big 4 lenders offer better investor rates at LVR below 70%, 60% and 50%.
• Think about structure. Before you refix, decide whether a split loan, an offset account, or a shorter fixed term better suits your cash position.
• Claim your borrowing expenses on the new loan. Establishment fees, any new LMI, valuation costs and mortgage registration fees on the refinanced loan are deductible, usually spread over five years. Read our full guide to borrowing expenses on investment property before you claim.
• Track the higher interest from day one. Your next rental property tax return should reflect every dollar of interest on the new loan, and the unclaimed balance of borrowing expenses from your original loan can be claimed in full in the year of refinance.

The Tax Angle Is Not a Get-Out-Of-Jail Card

One point worth emphasising. It is tempting to shrug off a rate move because "interest is deductible anyway". That framing is incomplete.

Interest is deductible, yes, and higher interest increases your deduction. But deductibility only returns a fraction of the extra cost. For a landlord on the 37% marginal tax bracket, every extra dollar of interest returns 37 cents at tax time. The remaining 63 cents has to come out of cash flow. On a $750,000 investment loan refixing 0.50 percentage points higher, the after-tax cost is still close to $1,830 per year. That is a real hit that needs to be planned for.

It also changes your negative gearing position. A property that was running at a small paper loss under a 5.89% fix may be running at a much larger paper loss under a 6.39% fix. That is only useful to you if you have other taxable income to absorb the deduction against. Sole landlords with low taxable incomes or those who are transitioning toward retirement see less benefit from a larger deductible loss. If that is you, the extra interest is closer to pure pain than the "deductible anyway" framing suggests.

For a deeper walkthrough of how this flows through your tax return, our negative gearing explained guide lays out the mechanics and the break-even maths across a few income levels.

What to Do This Week

You do not need to make a decision today. You do need to know your numbers.

Pull your latest loan statement, check your current rate and balance, and run the scenarios through the calculator above. If you have a fix rolling off in the next six months, start getting quotes now rather than in the final two weeks before rollover. If you are weighing a full refinance, factor in the borrowing expenses you will be able to claim, the unclaimed balance from your existing loan, and any break fees.

This is also a good moment to check whether your tax deductions are being captured correctly. Higher interest is only one part of your deductible expenses, and the landlords who come out of April 2026 in decent shape will be the ones who know exactly what each property costs them and exactly what it earns.

propkt helps you track rental income, loan interest, and every other deductible expense across each of your properties, so that when fixed rates move again (and they will), you already have the numbers in front of you instead of scrambling for a spreadsheet. Get started free.

Frequently Asked Questions

Are all Big 4 bank fixed rates now above 6% in April 2026?

Yes. Westpac became the last of the four major Australian banks to push its advertised fixed rates above 6% on April 2, 2026. CBA, NAB and ANZ had already moved earlier in March. According to Canstar, it is the first time in a long stretch that no Big 4 fixed rate starts with a 5.

Should I fix my investment loan in April 2026 or stay variable?

It depends on whether you value certainty or flexibility. Fixing at current rates locks in your cost for one to five years and protects you if the RBA hikes again. Staying variable keeps your options open, including any future rate cuts, but leaves you exposed to more hikes. The RBA meets again on May 5, 2026, and that decision will reset the calculation.

What is the lowest Big 4 bank fixed rate in April 2026?

According to Canstar's April 2 snapshot, the lowest advertised Big 4 fixed rates are NAB's 1-year at 6.04% and 2-year at 6.09%, with Westpac's 2-year at 6.14%. These are owner-occupier rates. Investor fixed rates typically sit around 20 to 30 basis points higher, so expect investor pricing in the 6.2% to 6.6% range across similar terms.

How much will my repayments rise if I refix from 5.89% to 6.39%?

On a $500,000 investment loan with 30 years remaining, rolling from a 5.89% fix to a 6.39% fix adds roughly $161 per month, or close to $1,930 per year. On a $750,000 loan the delta is around $242 per month. On a $1 million loan the delta is around $322 per month, or about $3,860 per year.

What happens at the May 2026 RBA meeting?

The next RBA Monetary Policy Board meeting is scheduled for May 5, 2026. The outcome is not known in advance, and we will not predict it. What matters is that banks price fixed rates around their expectations for the cash rate path, which is why the market has shifted so quickly in the weeks around each RBA decision.

Is mortgage interest still tax-deductible on an investment property in 2026?

Yes. Interest on a loan used to acquire or hold an income-producing rental property is fully tax-deductible in Australia. Higher interest means higher deductible expenses, which softens the cash flow hit at tax time. For details on what you can and cannot claim, see our landlord expenses guide.