ANZ has announced it will reduce variable home loan interest rates by 0.25%, effective 28 February, after the Reserve Bank of Australia (RBA) cut the official cash rate to 4.10%. 

ANZ group executive for Australia retail Maile Carnegie said the move would provide welcome relief for borrowers after a sustained period of high interest rates.

What does this mean for borrowers?

"The Reserve Bank's decision to reduce the cash rate is an important step for our economy and will be welcome news for our borrower customers, providing some long-awaited relief from cost-of-living pressures," Ms Carnegie said.

Borrowers be warned, while your interest rate might fall, your home loan repayments may not automatically decrease.

ANZ noted that borrowers who wish to adjust their direct mortgage repayments to reflect the cut can do so via the bank's website.

“Every dollar counts, so I encourage customers who’d like to learn more about what this rate change means for them to contact us and undertake a free home loan check-in," Ms Carnegie said.

She also acknowledged that, despite today's cut, interest rates remain high.

She urges any customers experiencing financial strain to reach out for support sooner rather than later.

"While our data indicates that our customers are generally faring well, some will still be facing challenges.

"We urge them to reach out sooner rather than later to discuss options for any additional support required, and we are committed to providing tailored solutions to ease financial strain."

ANZ customers can access support through the ANZ website, app, in-branch, or by calling ANZ Home Loans on 13 25 99.

Want to see how much this rate cut could save you? Use our Mortgage Repayment Calculator to find out.

Image by Mattinbgn on Wikimedia Commons

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