The smallest of the big four banks followed the path laid by its peers in recent months, cutting many of its fixed rate offerings by as much as 70 basis points on Friday morning.
The most competitive rate in ANZ's line up is now 5.99% p.a., available for owner-occupiers with loan-to-value ratios (LVRs) of 80% or less who fix their rate for two or three years.
And it's not just homeowners and refinancers who can make the most of the bank's newly dropped rates – investors also got their share of cuts.
ANZ's slashing spree comes just days after NAB dropped rates on many of its own fixed products for a second time this year, having been the first of the majors to cut in July.
Westpac and CommBank followed suit shortly after NAB's initial move, with the market's eyes fixed squarely on ANZ in the weeks since.
Fixed rates have been coming down across the board amid expectations of central bank rate cuts.
ANZ, NAB, and Westpac expect the Reserve Bank of Australia (RBA) to begin cutting the cash rate in early 2025.
CommBank, meanwhile, is predicting the first cash rate cut will come in December 2024.
ANZ cuts mortgage rates for owner-occupiers by up to 60 basis points
ANZ's fixed rate cuts will make a major difference to the finances of a person taking out a mortgage today versus yesterday.
The chart below shows how ANZ's fixed rate cut could impact the expenses of a person taking out a 30 year, $500,000 home loan with a three year fixed rate period:
| Interest rate | Approx monthly repayments | Total interest paid over three-year fixed period |
|---|---|---|
| 5.99% | $2,995 | $88,189.19 |
| 6.59% | $3,190 | $97,213.20 |
For a 30-year, $500,000 mortgage fixed for three years, ANZ's new rate of 5.99% p.a. could reduce monthly repayments by around $195, saving borrowers nearly $9,000 in interest over the three-year term.
Here are all the changes made to ANZ's fixed rate line up for owner-occupiers making principal and interest repayments:
| Fixed period | LVR | Change | New rate | Comparison rate* |
|---|---|---|---|---|
| One year | ≤80% | -30bp | 6.39% | 7.15% |
| 80-90% | -30bp | 6.44% | 7.34% | |
| Two years | ≤80% | -55bp | 5.99% | 6.99% |
| 80-90% | -55bp | 6.04% | 7.16% | |
| Three years | ≤80% | -60bp | 5.99% | 6.88% |
| 80-90% | -60bp | 6.04% | 7.04% | |
| Four years | ≤80% | -60bp | 6.14% | 6.84% |
| 80-90% | -60bp | 6.19% | 6.98% | |
| Five years | ≤80% | -60bp | 6.24% | 6.80% |
| 80-90% | -60bp | 6.29% | 6.93% |
ANZ drops fixed home loan rates for investors by as much as 70 basis points
ANZ's latest rate cuts aren't limited to owner-occupier mortgages.
Investors have also benefited from reductions of up to 70 basis points, with new rates starting at 6.19% p.a. for two and three year fixed terms.
The changes to the bank's investment home loan line up are as follows:
| Fixed rate period | LVR | Interest type | Change | New rate | Comparison rate* |
|---|---|---|---|---|---|
| One year | ≤80% | P&I | -40bp | 6.49% | 7.70% |
| IO | -40bp | 6.59% | 7.71% | ||
| 80-90% | P&I | -40bp | 6.54% | 7.88% | |
| IO | -40bp | 6.64% | 7.89% | ||
| Two years | ≤80% | P&I | -50bp | 6.19% | 7.50% |
| IO | -45bp | 6.29% | 7.53% | ||
| 80-90% | P&I | -50bp | 6.24% | 7.67% | |
| IO | -45bp | 6.34% | 7.69% | ||
| Three years | ≤80% | P&I | -50bp | 6.19% | 7.36% |
| IO | -45bp | 6.29% | 7.39% | ||
| 80-90% | P&I | -50bp | 6.24% | 7.51% | |
| IO | -45bp | 6.34% | 7.55% | ||
| Four years | ≤80% | P&I | -70bp | 6.24% | 7.24% |
| IO | -70bp | 6.34% | 7.29% | ||
| 80-90% | P&I | -70bp | 6.29% | 7.38% | |
| IO | -70bp | 6.39% | 7.44% | ||
| Five years | ≤80% | P&I | -70bp | 6.34% | 7.17% |
| IO | -70bp | 6.44% | 7.23% | ||
| 80-90% | P&I | -70bp | 6.39% | 7.30% | |
| IO | -70bp | 6.49% | 7.36% |
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Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
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