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ANZ follows big banks by hiking fixed rates
Australia’s fourth largest bank, ANZ, has today hiked fixed rates for owner-occupiers and investors by up to 0.40 per cent.
All big four banks have now hiked fixed rates this year. Westpac hiked fixed rates on 21 January, while CBA and NAB hiked last week.
ANZ has also cut the variable rate on its basic investor loan but only for new customers.
ANZ fixed rate changes for owner-occupiers – contact us for investor changes
| Fixed term | Old rate | New rate | Change | Repayment difference ($500K) |
| 1 yr fixed | 2.39% | 2.49% | 0.10% | $26 |
| 2 yr fixed | 2.59% | 2.89% | 0.30% | $79 |
| 3 yr fixed | 2.99% | 3.39% | 0.40% | $109 |
| 4 yr fixed | 3.39% | 3.79% | 0.40% | $112 |
| 5 yr fixed | 3.59% | 3.99% | 0.40% | $114 |
Source: RateCity.com.au. Note above rates are for owner-occupiers paying principal and interest on a package rate.
The big four banks are not moving in isolation. Analysis of the RateCity.com.au database shows that lenders big and small have hiked fixed rates this year, with a total of 42 lenders hiking 2-year fixed rates in this time.
Lenders that have changed at least one rate since 1 Jan
| Rate type | Lenders that have cut | Lenders that have hiked |
| 1 yr fixed | 2 | 37 |
| 2 yr fixed | 1 | 42 |
| 3 yr fixed | 0 | 41 |
| 4 yr fixed | 0 | 28 |
| 5 yr fixed | 0 | 37 |
| Variable | 15 | 8 |
Source: RateCity.com.au. Note some lenders have moved multiple rates.
RateCity.com.au research director, Sally Tindall, said: “ANZ’s hikes come as no surprise. The cost of funding is on the rise and it’s impacting the bank’s profit margins.”
“The big banks are in a tricky position. They still want to chase competition, but the rising cost of funding is making it impossible to offer low fixed rates,” she said.
“ANZ previously had some of the most competitive big four bank owner-occupier fixed rates, however, today’s hikes put them at the back of the big four pack.
“The majority of variable rate changes are still cuts but this trend is starting to slow. Since the start of the year, 15 lenders have cut at least one variable rate, however, eight banks have hiked.
“We expect this trend to reverse as we get closer to the next cash rate hike,” she said.
Average big four bank lowest home loan rates, 1 year ago vs today
| Rate Type | 1 year ago | Today | Difference |
| 1 yr fixed | 2.12% | 2.53% | 0.41% |
| 2 yr fixed | 2.08% | 2.80% | 0.72% |
| 3 yr fixed | 2.08% | 3.25% | 1.17% |
| 4 yr fixed | 2.04% | 3.55% | 1.51% |
| 5 yr fixed | 2.57% | 3.77% | 1.20% |
| Lowest variable | 2.57% | 2.24% | -0.33% |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest. Some LVR requirements apply. Westpac’s variable rate in Feb 2021 was an introductory rate for 2 yrs.
Lowest big four bank owner-occupier home loan rates
| Rate type | CBA | Westpac | NAB | ANZ |
| 1 yr fixed | 2.59% | 2.39% | 2.64% | 2.49% |
| 2 yr fixed | 2.84% | 2.59% | 2.89% | 2.89% |
| 3 yr fixed | 3.24% | 3.04% | 3.34% | 3.39% |
| 4 yr fixed | 3.54% | 3.34% | 3.54% | 3.79% |
| 5 yr fixed | 3.79% | 3.59% | 3.69% | 3.99% |
| Variable | 2.29% | 2.19% | 2.29% | 2.19% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
Disclaimer
This article is over two years old, last updated on February 8, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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