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ANZ hikes fixed rates
ANZ, Australia’s fourth largest bank, has today hiked fixed rates by up to 0.35 percentage points for both owner-occupiers and investors on 1- to 5-year terms.
These hikes come six weeks after ANZ cut its 1-year and 3-year fixed rates by up to 0.30 percentage points.
Today’s fixed rate hikes from ANZ
For owner-occupiers paying principal & interest, 20%+ deposit – contact us for other loan types
| Loan term | Old rate | New rate | Change |
| 1-yr | 6.34% | 6.69% | 0.35% |
| 2-yr | 6.24% | 6.54% | 0.30% |
| 3-yr | 6.29% | 6.59% | 0.30% |
| 4-yr | 6.49% | 6.74% | 0.25% |
| 5-yr | 6.59% | 6.84% | 0.25% |
Source: RateCity.com.au
ING has also today hiked new customer variable rates by up to 0.08 percentage points, and fixed home loan rates by up to 0.40 percentage points for both owner-occupiers and. Contact us for further details.
ANZ and ING are not moving in isolation, the RateCity.com.au database shows over the last month there have been significantly more hikes than cuts to fixed rates.
Fixed rate cuts and hikes – last 1 month
| Loan term | Lenders that have cut | Lenders that have hiked |
| 1-yr | 4 | 16 |
| 2-yr | 7 | 13 |
| 3-yr | 6 | 13 |
| 4-yr | 1 | 4 |
| 5-yr | 6 | 10 |
Source: RateCity.com.au
Hikes take ANZ out of top spot for big four
Today’s rate increases from ANZ sees it move from offering some of the most competitive fixed rates out of the majors, to the most expensive options out of the big four banks’ lowest advertised fixed rates, with the exception of its 2-year loan term.
Note, the lowest rates are for owner-occupiers paying principal and interest.
Big four banks’ lowest advertised fixed rates
| Loan term | CBA | Westpac | NAB | ANZ |
| 1-yr | 6.59% | 6.49% | 6.59% | 6.69% |
| 2-yr | 6.84% | 6.39% | 6.34% | 6.54% |
| 3-yr | 6.29% | 6.39% | 6.39% | 6.59% |
| 4-yr | 6.69% | 6.39% | 6.69% | 6.74% |
| 5-yr | 6.69% | 6.69% | 6.69% | 6.84% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Annual fees may apply. LVR requirements may apply.
Fixed rate hikes unlikely a concern for borrowers
The hikes from ANZ are unlikely to phase borrowers, with the latest ABS lending indicator data, released yesterday, showing just 4 per cent of new home loans in September opted for a fixed rate.
This is in stark contrast to July 2021, when 46 per cent of new loans were at fixed rates.
Value of new loans: fixed vs variable
Source: ABS Lending Indicators, original data.
RateCity.com.au research director, Sally Tindall, said: “ANZ is not increasing fixed rates in a silo. Over the last month there have been significantly more hikes to fixed rates than cuts across the market as banks factor in the rising cost of fixed rate funding.
“With just 4 per cent of new and refinanced loans opting for a fixed rate, banks aren’t going to take a gamble on under-pricing these rates, as they’re unlikely to bring new business in the door,” she said.
“As a result of these changes, ANZ has gone from offering some of the sharpest fixed loans out of the big four banks’ lowest rates, to some of the least competitive in this group.
“This is unlikely to be a sign ANZ is walking away from competition in the market, because when it comes to fixed rates, there’s really no competition to talk of” she said.
Lowest fixed rates on RateCity.com.au
For owner-occupiers paying principal and interest
| Loan Term | Rate | Lender |
| 1-yr | 5.48% | Macquarie Credit Union |
| 2-yr | 5.49% | South West Slopes Credit Union |
| 3-yr | 5.48% | Australian Mutual |
| 4-yr | 5.84% | Qudos Bank |
| 5-yr | 5.39% | RACQ |
Source: RateCity.com.au. Note LVR requirements may apply.
Summary of big four bank fixed rate changes: last 4 months
| Date | Bank | Max change |
| 03-Jul | CBA | Up to +0.35% |
| 12-Jul | ANZ | Up to +0.55% |
| 18-Jul | CBA | Up to +0.40% |
| 18-Jul | Westpac | Up to +0.40% |
| 21-Jul | NAB | Up to +0.30% |
| 28-Jul | NAB | Up to +0.20% |
| 11-Aug | CBA | Up to -0.35% |
| 13-Sep | NAB | Up to -0.35% |
| 13-Sep | Westpac | Up to -0.25% |
| 19-Sep | ANZ | Up to -0.30% |
| 28-Sep | NAB | Up to +0.15% |
| 3-Nov | ANZ | Up to +0.35% |
Source: RateCity.com.au. Note: includes owner-occupier and investor changes. Contact us for list of individual changes.
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Product database updated 20 May, 2024
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