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ANZ the next big bank to hike variable and cut 3-year fixed rates
ANZ has today increased the rates on its basic variable home loan by up to 0.10 percentage points, but only for new customers.
This is the second time Australia’s fourth largest bank has increased the new customer rates on this loan in less than four weeks.
Existing customers are not impacted.
Today’s variable rate hike: ANZ Simplicity Plus - for owner-occupiers paying principal & interest.
| LVR required | Old rate | New rate | Change (% points) |
| 60% or less | 5.44% | 5.54% | +0.10 |
| 70% or less | 5.49% | 5.59% | +0.10 |
| 80% or less | 5.59% | 5.69% | +0.10 |
| 90% or less | 6.29% | 6.29% | No change |
| Over 90% | 6.69% | 6.69% | No change |
Source: RateCity.com.au. Note: rates are for new customers who are owner-occupiers paying principal and interest.
Big bank new customer variable rate hikes: last two months
Note: these hikes are in addition to the 0.25% increase on the back of the RBA’s March decision
| Date | Bank | Loan | Change |
| 1-Mar | CBA | Basic variable | up to 0.10% pts |
| 1-Mar + 10-Mar | NAB | Basic variable | up to 0.20% pts |
| 25-Mar | CBA | Basic variable | up to 0.70% pts |
| 28-Mar | ANZ | Basic variable | up to 0.21% pts |
| 31-Mar | CBA | Package loan | up to 0.20% pts |
| 13-Apr | Westpac | Basic variable | 0.10% pts |
| 14-Apr | CBA | Package loan | up to 0.12% pts |
| 21-April | ANZ | Basic variable | up to 0.10% pts |
FIXED RATE CUTS - ANZ follows CBA by cutting 3-year fixed rates
ANZ has also cut its 3-year fixed rate today by up to 0.60 percentage points for owner-occupiers and investors.
The move is in lock-step with CBA, which cut its 3-year fixed rate last Friday.
Today’s ANZ fixed rate changes
Note: rates are for borrowers paying principal and interest with a deposit of 20% or more.
| Old rate | New rate | Change | |
| Owner-occupiers, 3-yr fixed | 6.09% | 5.49% | -0.60% |
| Investors, 3-yr fixed | 6.19% | 5.69% | -0.50% |
Source: RateCity.com.au.
For over a year, the vast majority of fixed rate changes have been hikes not cuts across the Australian mortgage market.
However, the tide is now turning, particularly for 3-year fixed rates as the banks re-open the door to competition in this space.
Source: RateCity.com.au. Note: bars include all changes in the week ending on the specified date.
As a result of today’s move, ANZ now has the lowest 3-year fixed rate on offer from the big four banks at 5.49 per cent. However, this rate is still 0.50 percentage points higher than the lowest 3-year fixed rate of 4.99 per cent.
Big four banks’ lowest fixed rates for owner-occupiers
| 1-year | 2-year | 3-year | 4-year | 5-year | |
| CBA | 5.99% | 6.09% | 5.59% | 6.59% | 6.69% |
| Westpac | 5.54% | 6.09% | 6.39% | 5.84% | 6.69% |
| NAB | 6.04% | 6.04% | 6.04% | 6.34% | 6.44% |
| ANZ | 5.99% | 5.99% | 5.49% | 6.29% | 6.39% |
Source: RateCity.com.au. Note: rates are for new customers who are owner-occupiers paying principal and interest. LVR requirements apply.
Lowest fixed rates on RateCity.com.au
| Term | Lender | Rate |
| 1-year fixed | The Capricornian | 5.10% |
| 2-year fixed | Tic Toc | 5.29% |
| 3-year fixed | The Capricornian | 4.99% |
| 4-year fixed | ING | 5.34% |
| 5-year fixed | Macquarie Bank | 5.35% |
Source: RateCity.com.au. Note: rates are for new customers who are owner-occupiers paying principal and interest. LVR requirements may apply.
RateCity.com.au research director, Sally Tindall, said: “The exodus away from cut-throat new customer variable rates continues, with ANZ the latest big bank to hike these rates.”
“The record volume of refinancers is likely to be putting extra pressure on the banks, in addition to the sharp rise in funding costs, forcing them to retreat from the new customer bidding war,” she said.
“Meanwhile, some fixed rates are slowly starting to come back down to Earth, although it’s likely they’ll have further to fall.
“Fixed rates have largely been relegated to Siberia over the last 12 months as borrowers overwhelmingly opt for variable rates.
“Now we are at or near the cash rate peak, the tide is starting to turn.
“We are finally starting to see more fixed rate cuts than hikes, in a sign lenders are keen to re-lock customers into these deals.
“At 5.49 per cent, ANZ has taken pole position in the jostle for the lowest 3-year fixed rate among the big four banks, however, this offer is still half a percentage point higher than the lowest fixed rate in the market.
“CBA and ANZ have both cut their 3-year fixed rates in the space of a week, leaving Westpac and NAB’s rates looking like fish out of water. We expect at least one, if not both, of these banks will cut these rates in coming weeks.
“While the big banks might be starting to give their fixed rates a much-needed makeover, it’s hard to see borrowers flocking back to them in droves at this point in time.
“Locking in a rate starting with a ‘5’ is a very different proposition to securing a rate that starts with a ‘1’ or a ‘2’.
“Many economists are predicting cash rate cuts in the next couple of years, with Westpac forecasting up to six cuts over the next two years. It’s no wonder many borrowers aren’t yet keen to chain their mortgage up to a fixed rate,” she said.
Big four banks’ variable rates for owner-occupiers
| Bank | Basic variable | Variable with offset |
| CBA | 5.52% | 5.44% |
| Westpac | 5.24% for 2yrs then +0.40% | 6.69% |
| NAB | 5.59% | 6.82% |
| ANZ | 5.54% | 6.49% |
Source: RateCity.com.au. Note: rates are for new customers who are owner-occupiers paying principal and interest. LVR requirements apply. Annual fees apply for loans with offset accounts.
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Product database updated 19 Nov, 2024
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