Westpac has slashed fixed rates by up to 0.70 percentage points.

That makes it the first big bank to offer a fixed rate under 5 per cent in the current cycle, according to Canstar Blue.

The bank’s lowest advertised fixed rate now starts from 4.89 per cent, down 0.70 percentage points.

That’s specifically for its two-year term for owner-occupiers paying principal and interest with a 30 per cent deposit.

By comparison, Commonwealth Bank’s fixed rate for the same term sits at 5.44 per cent, while NAB and ANZ’s start from 5.19 per cent.

“[Westpac’s] move is likely to be in response to an easing in the cost of fixed rate funding and the strong possibility of further easing from the RBA,” Canstar.com.au data insights director Sally Tindall said.

“There’s also likely to be an element of competition driving Westpac’s decision today, despite the fact that fixing is not yet back in vogue with customers.”

Westpac’s three-year term rate also dropped 0.60 percentage points to 5.29 per cent.

Its one-year term rate dropped to 5.19 per cent, down 0.50 percentage points, and its four- and five-year term rates dropped by 0.30.

Westpac now offers the lowest fixed rates among the big four banks across the board, though it shares the title with NAB on the three-year term.

The cuts span the Westpac group (St George, Bank of Melbourne, BankSA) with up to 90 percentage points slashed from some fixed terms.

And it’s not the only lender slashing rates.

Analysis from Canstar.com.au shows that almost 30 now offer a fixed rate under 5 per cent, compared to zero at the start of 2025.

“While the RBA has said that further easing is likely, there’s still not a huge amount of clarity on how many cuts are to come in the cycle,” Tindall added.

“Plus, there’s always the wildcard that some banks might not pass on future cuts in full.”