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Fixed rates continue to defy gravity, with ANZ the latest to hike
Australia’s fourth largest lender, ANZ, has today hiked fixed rates by up to 0.30 percentage points for owner-occupiers and investors.
ANZ FIXED RATE CHANGES: owner-occupiers, principal and interest
| Term | Old rate | New rate | Change % points |
| 1-yr fixed | 5.19% | 5.49% | 0.30% |
| 2-yr fixed | 5.49% | 5.79% | 0.30% |
| 3-yr fixed | 5.89% | 6.19% | 0.30% |
| 4-yr fixed | 5.99% | 6.29% | 0.30% |
| 5-yr fixed | 6.09% | 6.39% | 0.30% |
Source: RateCity.com.au.
ANZ is not hiking fixed rates in isolation. Analysis of the RateCity.com.au database shows over 40 lenders have hiked at least one fixed rate in the last month.
Number of lenders that have changed at least one rate in the last month
| Rate type | Lenders that have cut | Lenders that have hiked |
| 1-year fixed | 3 | 37 |
| 2-year fixed | 3 | 30 |
| 3-year fixed | 3 | 22 |
| 4-year fixed | 1 | 10 |
| 5-year-fixed | 2 | 16 |
Source: RateCity.com.au. Changes include owner-occupiers and investors.
Source: RateCity.com.au. Rates are the lowest rates for owner-occupiers paying principal and interest. Some LVR requirements apply.
RateCity.com.au research director, Sally Tindall, said: “Fixed rates continue to defy gravity, with ANZ the latest bank to hike these rates across the board.”
“While the size and pace of the fixed rate hikes have slowed considerably, there’s little sign of a market-wide turnaround just yet,” she said.
“After 2.75 percentage points of cash rate hikes, the gap between fixed and variable has narrowed, however, there’s still a considerable amount of daylight between the majority of these rates.
“Right now, the average gap between the big four banks’ lowest 2-year fixed rates, and their lowest variable rates, is 1.19 percentage points. That’s a significant difference considering the banks’ own economic teams are predicting between 0.25 and 1.00 percentage points more of hikes, with three of the four expecting rate cuts in the months after.
“Interestingly, CBA and Westpac’s 4-year fixed rates, at 5.49 per cent and 5.64 per cent respectively are lower than their 2- and 3-year rates for owner-occupiers.
“These longer-term rates appear to be a bid from Australia’s two biggest banks to lock in customers for the next four years.
“While fixing can provide some customers with certainty to help them budget, anyone looking to lock in their rate would do well to shop around.
“If you’re rolling off a fixed rate and set on doubling down, by all means research the latest projections for the cash rate, but know they could change in a blink of an eye. You might be better placed spending more of your time looking for a competitive rate, rather than gazing into the crystal ball. The average of the big four banks’ lowest 2-year fixed rates is currently 0.95 percentage points higher than the lowest 2-year rate in the market.
“The RBA’s latest statements have provided little indication of what lies ahead. With references to both the potential return to double hikes, to get the inflation job done, and the possibility of a stint of no hikes to assess how households are holding up, even the crystal ball readers will have trouble interpreting this one,” she said.
Lowest big four bank rates for owner-occupiers paying principal and interest
(note: interest-only and investor rates are higher)
| Rate type | CBA | Westpac | NAB | ANZ |
| 1-yr fixed | 5.39% | 5.34% | 5.29% | 5.49% |
| 2-yr fixed | 5.79% | 5.89% | 5.89% | 5.79% |
| 3-yr fixed | 5.99% | 6.19% | 6.34% | 6.19% |
| 4-yr fixed | 5.49% | 5.64% | 6.59% | 6.29% |
| 5-yr fixed | 6.69% | 6.49% | 6.69% | 6.39% |
| Lowest variable | 4.69% | 4.49% for 2 yrs then 4.89% | 4.74% | 4.69% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.
Lowest home loan rates on RateCity.com.au
| Rate type | Lender | Rate |
| Lowest variable | Bank First | 4.19% |
| 1-year fixed | Police Credit Union | 4.19% |
| 2-year fixed | Auswide Bank | 4.89% |
| 3-year fixed | Tic:Toc Home Loans | 5.09% |
| 4-year fixed | IMB Bank | 5.39% |
| 5-year fixed | HSBC | 5.49% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.
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Product database updated 18 Oct, 2024
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