A big bank is among 12 that have hiked interest rates in the past week.

Mortgage shock is set to smash Aussies heading into Xmas, with a big bank raising rates for the second time in a month, bringing to a dozen those that have hiked in the past week alone.

One of Australia’s big four, Westpac, on Friday lifted its fixed home loan rates again – its last rise was on November 12 – coming hard on the heels of a shock Reserve Bank warning that it would revisit rate hike discussions in 2026.

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Major changes underway with interest rates. Source: Canstar.

Canstar data insights director Sally Tindall said Westpac’s rapid move was no surprise. “The ink is barely dry on the RBA’s latest statement and Westpac has already jumped,” she said.

“When the Governor indicates a rate hike is on the cards, lenders listen and fixed rates move. This won’t be the last fixed rate hike we see before the year is out.”

Westpac’s increase of up to 0.35 percentage points pushed its lowest fixed rate to 5.49 per cent, and landed just hours after Reserve Bank Governor Michele Bullock revealed the board had actively discussed a 2026 hike at its December meeting and would “consider it at some point next year”.

It couldn’t have come at a worse time under two weeks from Christmas.

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The hike couldn’t have come at a worse time with Xmas under two weeks away. Picture: William WEST / AFP)

The cash rate target remains at 3.6 per cent, but major lenders have already started shifting. Canstar found Westpac, St George, Bank of Melbourne, BankSA, ING, HSBC, Suncorp and Australian Mutual Bank were among those hiking fixed rates over the past week.

The number of lenders still offering a fixed rate under 5 per cent has plunged from 43 a month ago to just 29.

Ms Tindall warned borrowers considering fixing to act sooner rather than later, with many sub-5 per cent deals unlikely to survive the summer.

The lowest fixed rates on Canstar’s database currently sit at 4.84 per cent for one year with Pacific Mortgage Group, 4.79 per cent for two years with Community First/Illawarra CU, and 4.84 per cent for three years with Horizon Bank.

Teachers Mutual Group and Freedom Lend hold the lowest four-year and five-year rates at 5.24 per cent.

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Canstar estimates of fixed vs variable positions. Source: Canstar

The other big four banks have also flagged the risk of rate hikes ahead, with Commonwealth Bank warning the first move could come as early as February.

Canstar modelling shows an owner-occupier with a $600,000 loan and 25 years remaining who switches to the lowest two-year fixed rate instead of the lowest variable could come out $6,697 ahead if the RBA delivers two hikes in May and August 2026.

The estimates exclude fees, extra repayments and out-of-cycle changes.

The RBA board won’t meet again until February 3, 2026, so any rate shocks before then are coming straight from lenders.

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