As financial markets reset after a more dovish than anticipated Reserve Bank monetary policy review, Westpac is cutting three longer term home loan rates

Following the dovish Reserve Bank OCR review on Wednesday (February 18) financial markets have reset their expectations of rate changes.

And this has triggered Westpac to cut long term fixed home loan rates.

The red bank has cut its three year rate by -16 basis points (bps) to 4.99%, its four year rate by -20 bps to 5.19%, and five year rate by -20 bps to 5.29%.

These changes become effective on Monday, February 23. And they come just after many banks raised longer rates over the past few weeks.

Westpac did not announce term deposit rates cuts at this time.

On February 13 at the end of this week, the five year swap rates was 3.70%. Today it is 3.48%. That is a -22 bps fall. For the three year swap rate, the change was from 3.37% to 3.15%, also a -22 bps fall. See the swap rat charts below.

Interestingly the one year swap rate has fallen -8 bps over the same period abut the two year by -19 bps. Perhaps that opens up the possibility of other banks moving on the two year fixed rate as well.

To compare mortgage rate offers in a way that includes the application and account fees costs (or break fee costs if you need to do that), and applying the impact of a cashback/legal fee reimbursement, or other incentive, you can use our home loan comparison calculator. You can find it here. Or, for convenience, we have added it to the bottom of this article.

Negotiate. How flexible banks may be will depend on the strength of your financials.

One other useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is here.

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees will be minimal in a rising market. But they become important in a falling market, like now.

Here is the snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at February 23, 2026	%	%	%	%	%	%	%
ANZ	4.49	4.49	4.69	4.89	5.19	5.89	5.99
	4.59	4.59	4.75	4.95	5.19	5.55	5.69
	4.49	4.49	4.64	4.69	5.09	5.55	5.69
	4.49	4.49		4.89	5.25	5.69	5.79
	4.49	4.49	4.69	4.89	4.99 -0.16	5.19 -0.20	5.29 -0.20
Bank of China	4.38	4.48	4.48	4.58	4.88	5.28	5.28
China Construction Bank	4.79	4.49	4.49	4.54	4.90	5.10	5.20
Co-operative Bank	4.65	4.49	4.69	4.79	5.09	5.29	5.49
ICBC	4.69	4.39	4.49	4.59	4.99	5.09	5.19
	4.69	4.49	4.69	4.89	5.15	5.55	5.69
	4.59	4.39	4.75	4.89	5.15	5.55	5.69