No more sub-5% Big 4 home loan rates: CommBank wipes special offer

The biggest of the big four banks has walked back a limited time 4.99% p.a. fixed rate offer, leaving the sub-5% mortgage rate market bear of major lenders.

CommBank’s limited time 4.99% p.a. two-year fixed rate special offer has come to an end, marking the final sub-5% home loan domino to fall at Australia’s big four banks.

It comes after Westpac hiked its lowest fixed rate by 35 basis points to 5.24% p.a. (7.68% p.a. comparison rate*) earlier this month.

That rate is now available at Westpac for homeowners with loan-to-value ratios (LVRs) of 70% or less.

At NAB and ANZ, fixed rates haven’t dipped below 5% milestone so far this cycle.

Looking beyond the big four, Macquarie Bank lifted its lowest fixed rate from 4.99% p.a. to 5.19% p.a. (5.34%-5.35% p.a. comparison rate*) on 13 November.

CommBank’s lowest advertised fixed home loan interest rate now stands equal with its lowest offered variable rate, advertised on its Digi Home Loan product.

While CommBank technically didn’t hike any rates this week – its previously advertised 4.99% p.a. fixed rate was always a limited time deal – its expiry on 20 November may mark a pivotal moment in the current rate cycle.

CommBank warns of potential for 2026 rate hikes

CommBank economists are among a growing number of experts forecasting the RBA cash rate will remain at its current level for the foreseeable future.

In fact, they’re warning that 2026 has the potential to bring more RBA rate hikes.

“Recent data has complicated the task of the RBA,” CBA chief economist Luke Yeaman said on Tuesday.

“Stronger growth, a resilient labour market, rising house prices and an inflation surprise in the September quarter have taken rate cuts off the table and raised the risk of hikes in 2026.”

He added that the economy is close to its “speed limit”, suggesting that without significant data surprises, hikes remain a risk not a base case expectation.

Still, such commentary may prompt some mortgage holders to consider fixed rates, which can guard against potential upward RBA rate movements.

Fixed rates under 5% still on offer from smaller lenders

Despite the big banks stepping back, many smaller lenders continue to advertise fixed rates under 5%.

Interestingly, CommBank subsidiary Bankwest is still advertising a 4.99% two-year fixed rate (7.64% p.a. comparison rate*) for owner-occupiers with LVRs of 80% or less.

Meanwhile, ING advertises two-year fixed rates of 4.89% p.a. for owner-occupiers with LVRs of 80% or less (5.32% p.a. comparison rate*).

And that’s not the lowest on the market.

At the time of writing, Australian Mutual Bank offers two- and three-year fixed rates starting at 4.74% p.a. (comparison rates* 5.58% p.a. and 5.50% p.a. respectively).

Other banks offering fixed rates sub-4.89% p.a. right now include Greater Bank, Bank Australia, Police Bank, Horizon Bank, Unity Bank, and G&C Mutual.

In the current environment, it may be smaller lenders – which typically face stronger competition – that become the beacon of comparatively ‘low’ home loan rates.

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_{Image created on Canva using assets from Commonwealth Bank of Australia}