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ANZ bucks the trend and cuts home loan rates

ANZ bucks the trend and cuts home loan rates

Australia’s third largest lender, ANZ, has slashed some of its home loan rates, as competition heats up in a flagging market.

The move sees ANZ cut owner-occupier principal-and-interest rates on its basic home loan, bringing the rate down by 34 basis points to 3.65 per cent. This is now the lowest ongoing variable rate offered by a big four bank.

ANZ has also cut some of its fixed home loan rates by up to 24 basis points for owner-occupier principal-and-interest mortgages and up to 13 basis points for investor principalandinterest loans.

Sally Tindall, research director at RateCity.com.au, said it was a surprising move from ANZ to buck the rate-hike trend.

“This is a big win for consumers because one of the big four banks is now playing at the pointy end of the home loan market,” she said.

“It’s a huge move from ANZ who now offers the lowest ongoing variable rate from one of the major banks.

“It shows that the bank is competing hard to get new customers as non-banks threaten their market share.

“This comes at a time when the market was expecting ANZ to hike rates and not cut them, and the Royal Commission has turned the playing field on its head,” she said.

Lowest ongoing advertised variable home loan rates – big four banks

CompanyProductAdvertised rateComparison rate
ANZSimplicity Plus Home Loan Owner Occupied (principal and interest) 3.65%3.69%
NABBase Variable Rate Home Loan (principal andinterest)3.69%3.73%
Commonwealth BankExtra Home Loan (principal andinterest)3.99%4.00%
WestpacPremier Advantage Package Rocket Repay Home Loan (principal andinterest)4.34%4.72%

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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