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ANZ cuts fixed rates: last of the big four to join under 6% club
Australia’s fourth largest lender, ANZ, has today cut its fixed home loan rates by up to 0.60 percentage points for owner-occupiers, and up to 0.70 percentage points for investors.
This takes ANZ’s lowest fixed rate to 5.99 per cent for both 2- and 3-year terms for owner-occupiers with at least a 20 per cent deposit (loan-to-value-ratio of 80 per cent or less).
Today’s fixed rate changes from ANZ
Rates are for owner-occupiers paying principal and interest (deposits of 20% or more)
Fixed term | Old rate | New rate from | Change %-points |
1-year | 6.69% | 6.39% | -0.30 |
2-year | 6.54% | 5.99% | -0.55 |
3-year | 6.59% | 5.99% | -0.60 |
4-year | 6.74% | 6.14% | -0.60 |
5-year | 6.84% | 6.24% | -0.60 |
Source: RateCity.com.au
How the big four now stack up
Today’s move brings ANZ into the ‘under 6 per cent club’, joining its big four bank competitors:
- ·July 22: NAB cut some fixed rates under 6 per cent + October 8: NAB cut fixed rates again
- ·August 21: Westpac cut some fixed rates under 6 per cent
- ·August 23: CBA cut some fixed rates under 6 per cent.
At 5.99 per cent, ANZ’s lowest 3-year fixed rate remains higher than its major bank competitors, with CBA, Westpac and NAB’s rates starting from 5.89 per cent.
Note that deposit requirements differ between the big four banks.
That said, the lowest fixed rate on the RateCity.com.au database is 0.90 percentage points lower than the big four banks’ lowest offering, at 4.99 per cent for 3 years from SWS Bank.
Big four banks: lowest advertised rates
Loan type | CBA | Westpac | NAB | ANZ |
1 year | 6.39% | 6.09% | 6.29% | 6.39% |
2 year | 6.29% | 5.89% | 6.04% | 5.99% |
3 year | 5.89% | 5.89% | 5.89% | 5.99% |
4 year | 6.29% | 5.89% | 6.24% | 6.14% |
5 year | 6.69% | 5.89% | 6.29% | 6.24% |
Variable | 6.15%* | 6.44%, 2 yrs then +0.4% pts | 6.79% | 6.14%* |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest. Deposit requirements apply. * rates are for CBA and ANZ’s digital-only home loans.
The RateCity.com.au database shows there are now over 70 lenders with at least one fixed rate under 6 per cent, while there are over 30 lenders with at least one variable rate starting with a ‘5’.
Lenders that have moved at least one home loan rate in the last 2 months (12 August to 11 October)
Source: RateCity.com.au. Note: A number of lenders have changed multiple home loan rates
RateCity.com.au money editor Laine Gordon said: “ANZ is the last big four bank to cut a fixed home loan rate below 6 per cent, but the bank has succumbed to competition.”
“The number of lenders joining the under 6 club is quickly growing,” she said.
“Two months ago there were around 50 fixed rates starting with a ‘5’, and now there are over 70, and the rate cut party is far from over.
“A big bank fixed rate starting with a ‘5’ is likely to get people talking, however, it’s unlikely to get people fixing their home loans.
“Fixing for three years is a big financial commitment at any time, but particularly when the future of the cash rate remains uncertain.
“The RateCity.com.au database shows most banks’ lowest advertised rates are now fixed, but a few cash rate changes could change that equation.
“People with a home loan should see this as a reminder to check their rate and do a quick search to make sure it is competitive now.
“It’s been 11 months since the last RBA cash rate change, yet lots of lenders have cut their rates in that time – you don’t want to be left behind,” she said.
Lowest home loan rates on the RateCity.com.au database
Fixed term | Advertised rate from | Lender |
1-yr | 5.50% | Geelong Bank |
2-yr | 5.39% | Macquarie Bank |
3-yr | 4.99% | SWS Bank |
4-yr | 5.39% | Macquarie Bank |
5-yr | 5.34% | Macquarie Bank |
Variable | 5.75% | Abal Banking |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest. Deposit requirements apply, excludes green loans, lowest variable excludes introductory rates.
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Product database updated 24 Dec, 2024
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