The smallest of Australia's big four banks now advertises the most competitive fixed rate of the quartet - at just 5.74% p.a. for eligible owner-occupiers.
Previously, the lowest advertised rate among the majors was 5.89% p.a., offered by both NAB (on three-year fixed rate periods) and Westpac (for select borrowers fixing for two or more years).
ANZ officially joined the apparently ongoing home loan rate cutting spree on 11 October, months after 2024's first downwards move from a major bank occurred in July.
It's latest moves see a home loan borrower with a deposit of 20% fixing their rate for a three-year period now able to realise an interest rate 5.74% p.a. – down from 6.59% p.a. at the start of October.
Such a difference could result in notable savings for a homeowner with a $500,000, 30-year mortgage, dropping their monthly repayments from $3,190 to $2,915 – a $275 difference.
Learn how a rate cut could impact your finances: Mortgage Repayment Calculator
However, borrowers with deposits or equity worth less than 20% of their property's value might find they face higher rates in the wake of ANZ's adjustments.
Monday's rate move came amid news ANZ's bottom line will take a $196 million post-tax hit in the second half of its fiscal year due to accounting related adjustments.
The adjustments are largely related to the consolidation of Suncorp Bank, which it acquired earlier this year.
Fixed home loan rate changes for owner-occupiers
If you're hunting for a new owner-occupied home loan, here are the latest rate changes from ANZ for borrowers making principal and interest repayments:
| Fixed Period | LVR | Change | New Rate | Comparison Rate* |
|---|---|---|---|---|
| One year | ≤80% | -25bp | 6.14% | 7.13% |
| 80-90% | +15bp | 6.59% | 7.35% | |
| Two years | ≤80% | -25bp | 5.74% | 6.94% |
| 80-90% | +15bp | 6.19% | 7.19% | |
| Three years | ≤80% | -25bp | 5.74% | 6.81% |
| 80-90% | +15bp | 6.19% | 7.08% | |
| Four years | ≤80% | -25bp | 5.89% | 6.75% |
| 80-90% | +15bp | 6.34% | 7.03% | |
| Five years | ≤80% | -25bp | 5.99% | 6.69% |
| 80-90% | +15bp | 6.44% | 7.00% | |
| Seven years | ≤80% | -25bp | 7.24% | 7.24% |
| 80-90% | +15bp | 7.69% | 7.59% | |
| Ten years | ≤80% | -25bp | 7.24% | 7.24% |
| 80-90% | +15bp | 7.69% | 7.63% |
Fixed Home Loan Rate Changes for Property Investors
Meanwhile, property investors might find their attention piqued by these new fixed rates:
| Fixed Period | LVR | Interest Type | Change | New Rate | Comparison Rate* |
|---|---|---|---|---|---|
| One year | ≤80% | P&I | -25bp | 6.24% | 7.67% |
| IO | -25bp | 6.34% | 7.68% | ||
| 80-90% | P&I | +15bp | 6.69% | 7.89% | |
| IO | +15bp | 6.79% | 7.91% | ||
| Two years | ≤80% | P&I | -25bp | 5.94% | 7.45% |
| IO | -25bp | 6.04% | 7.48% | ||
| 80-90% | P&I | +15bp | 6.39% | 7.70% | |
| IO | +15bp | 6.49% | 7.72% | ||
| Three years | ≤80% | P&I | -25bp | 5.94% | 7.28% |
| IO | -25bp | 6.04% | 7.32% | ||
| 80-90% | P&I | +15bp | 6.39% | 7.55% | |
| IO | +15bp | 6.49% | 7.59% | ||
| Four years | ≤80% | P&I | -25bp | 5.99% | 7.15% |
| IO | -25bp | 6.09% | 7.21% | ||
| 80-90% | P&I | +15bp | 6.44% | 7.44% | |
| IO | +15bp | 6.54% | 7.49% | ||
| Five years | ≤80% | P&I | -25bp | 6.09% | 7.06% |
| IO | -25bp | 6.19% | 7.13% | ||
| 80-90% | P&I | +15bp | 6.54% | 7.37% | |
| IO | +15bp | 6.64% | 7.43% | ||
| Seven years | ≤80% | P&I | -25bp | 7.24% | 7.49% |
| IO | -25bp | 7.24% | 7.50% | ||
| 80-90% | P&I | +15bp | 7.69% | 7.84% | |
| IO | +15bp | 7.69% | 7.84% | ||
| Ten years | ≤80% | P&I | -25bp | 7.24% | 7.40% |
| IO | -25bp | 7.24% | 7.42% | ||
| 80-90% | P&I | +15bp | 7.69% | 7.78% | |
| IO | +15bp | 7.69% | 7.79% |
What's going on with the RBA?
Punters might wonder if the latest home loan rate drops from the big four bank are a sign of an upcoming Reserve Bank of Australia (RBA) cash rate cut.
ANZ, along with NAB and Westpac, is forecasting the RBA board to make its first downward movement in February 2024.
The cash rate influences banks' operating costs and when it's high lenders tend to increase interest rates on loan products to recoup their higher costs.
Conversely, a cash rate cut could trigger a downward trend in home loan rates.
Interest rates play a crucial role in managing inflation, which the RBA wants to keep within its 2% to 3% target range – underlying inflation lifted 3.8% over the 12 months to the June quarter.
The Australian Bureau of Statistics (ABS) is set to release inflation figures for the September quarter on Wednesday and the outcome could significantly impact the RBA board's decision-making.
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