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Fixed rate shake up: home loan changes from CBA and ANZ today
Two of Australia’s biggest banks have today shaken up their fixed home loan rates, four days before the RBA is expected to hike the cash rate again.
Today CBA has cut its 3-year fixed rates for owner-occupiers and investors, while increasing 1- and 4-year rates.
CBA fixed rate changes for owner-occupiers
| Old rate | New rate | Change % points | |
| 1-yr fixed | 4.99% | 5.39% | +0.40% |
| 2-yr fixed | 5.79% | 5.79% | N/A |
| 3-yr fixed | 6.39% | 5.99% | -0.40% |
| 4-yr fixed | 4.99% | 5.49% | +0.50% |
| 5-yr fixed | 6.69% | 6.69% | N/A |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate.
In a surprise move, CBA has cut its owner-occupier interest-only 3-year rate by 1.05 percentage points and its investor principal and interest rate by 1.00 percentage points.
This means the bank is now offering owner-occupiers paying interest-only a lower 3-year fixed rate than owner-occupiers who are paying off their debt.
CBA 3-year fixed rate options
| Borrower type | Lowest 3-yr rate |
| Owner occupier, principal and interest | 5.99% |
| Owner occupier, interest-only | 5.79% |
| Investor, principal and interest | 5.59% |
| Investor, interest-only | 5.69% |
ANZ has also today increased its 1-year fixed rate for owner-occupiers and investors, hiking by up to 0.50 percentage points. However, the bank left its other fixed rates unchanged.
ANZ fixed rate change for owner-occupiers
| Old rate | New rate | Change | |
| 1-yr fixed | 4.69% | 5.19% | +0.50% |
Source: RateCity.com.au. Note: Above rates are for owner-occupiers paying principal and interest.
Should borrowers fix or go variable?
As the cash rate keeps climbing, the gap between variable and fixed rates continues to close.
However, currently most banks’ lowest rates are still variable, even after five months of RBA increases.
- 3.74% is the lowest variable rate (from lenders which have announced Sept RBA changes).
- 3.99% is the lowest 1-year fixed rate.
- 4.89% is the lowest 2-year fixed rate.
- 4.69% is the lowest 3-year fixed rate.
Just how high variable rates will rise in the coming months remains a contentious issue. Even the big four bank economists have very different forecasts.
Updated big four bank cash rate forecasts
- CBA: +0.25% in Oct, peaking at 2.85% in Nov. Two 0.25% cuts in Aug and Nov 2023.
- Westpac: +0.50% in Oct, peaking at 3.60% in Feb 2023. Four 0.25% cuts in 2024.
- NAB: +0.50% in Oct, peaking at 3.10% in Nov.
- ANZ: +0.50% in Oct, peaking at 3.35% in Dec. Two 0.25% cuts in 2024.
RateCity.com.au research director, Sally Tindall, said: “CBA has dished up a mixed bag of fixed rate changes today.”
“The bank has hiked its 4-year fixed rate special but made a super-sized cut to its owner-occupier interest-only 3-year rate,” she said.
“As a result, the bank is now offering a lower 3-year fixed rate to owner-occupiers who don’t pay down their debt. It’s an odd message to send at a time when it’s critically important for owner-occupiers to keep paying off their loan, if they can afford to do so.
“Fixed rates have been bouncing up and down like a yo-yo over the last few months as the markets try to guess and second guess how the next couple of years will play out.
“While a handful of fixed rates might be on the way down, there’s still daylight between the big four banks’ lowest variable and fixed rates.
“The gap between CBA’s 2-year fixed rate and its lowest variable is 1.60 percentage points. That’s more than six standard RBA hikes between the two rates.
“While the big four banks are still relatively competitive when it comes to their lowest variable rates, their fixed rates are, by and large, well above the market leaders.
“If you are looking to fix, consider widening your research beyond the big banks. There are some relatively decent fixed deals out there, some even with cashback, but they’re not easy to find,” she said.
Lowest fixed home loan rates on RateCity.com.au
| Term | Lender | Advertised rate |
| 1-yr fixed | Police Credit Union | 3.99% |
| 2-yr fixed | bcu | 4.89% |
| 3-yr fixed | Police Bank | 4.69% |
| 4-yr fixed | bcu | 4.99% |
| 5-yr fixed | Macquarie Bank | 5.39% |
Rates are for owner-occupiers paying principal and interest. LVR requirements may apply.
Big four bank lowest rates for owner-occupiers
| Loan type | CBA | Westpac | NAB | ANZ |
| 1-yr fixed | 5.39% | 5.09% | 5.29% | 5.19% |
| 2-yr fixed | 5.79% | 5.89% | 5.89% | 5.49% |
| 3-yr fixed | 5.99% | 6.19% | 6.34% | 5.89% |
| 4-yr fixed | 5.49% | 5.39% | 6.59% | 5.99% |
| 5-yr fixed | 6.69% | 6.49% | 6.69% | 6.09% |
| Lowest variable | 4.19% | 3.99% for 2 yrs then 4.39% | 4.24% | 4.19% |
Rates are for owner-occupiers paying principal and interest. LVR requirements may apply.
Disclaimer
This article is over two years old, last updated on September 30, 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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Product database updated 18 Nov, 2024
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