powering smart financial decisions

ANZ cuts home loan and deposit rates

ANZ cuts home loan and deposit rates

ANZ Bank has today cut both home loan and deposit rates in the lead up to the RBA’s first meeting of the year.

ANZ’s basic variable home loan rate has fallen to 3.12 per cent for new owner occupier customers paying principal and interest with a 20 per cent deposit or more, a drop of 0.12 per cent.

ANZ Simplicity Plus new owner occupier principal and interest rates

 Home loanOld rate New rate Change to discount 
ANZ Simplicity Plus Home Loan (LVR 80% or less) 3.24% 3.12% 0.12% 
ANZ Simplicity Plus Home Loan (LVR over 80%)3.58% 3.38% 0.20%

Note: Simplicity Plus investor rates have not changed. Rates are available for new customers or existing customers borrowing $50,000 or more.

The change is an increase to the discount offered.

These changes mean ANZ now offers the second lowest ongoing variable rate out of the big four banks:

BankProduct Lowest ongoing variable rate Conditions
NAB Base variable rate 3.09% LVR of 80% or less 
ANZ Simplicity Plus 3.12% LVR of 80% or less 
Westpac Flexi First Option 3.18% LVR of 70% or less 
CBA Extra Home Loan 3.22% LVR of 70% or less

Note: the above rates are new customer variable rates for owner occupiers paying principal and interest.

Meanwhile ANZ has cut the base rate on its Online Saver account from 0.10 per cent to just 0.05 per cent, and cut the majority of its term deposit products by up to 0.10 per cent.

ANZ Online Saver

 Old max intro rateNew intro rate Old ongoing rate New ongoing rate Change
1.60% (first 3 mths) 1.55% (first 3 mths) 0.10% 0.05% 0.05%

Note: ANZ’s Goal Saver rates have remained the same.

Big four bank standard savings account rates

BankIntro rate Ongoing rate 
Westpac 1.66% (first 5 mths) 0.10% 
CBA 1.65% (first 5 mths) 0.10% 
NAB 1.55% (first 4 mths)0.11% 
ANZ 1.55% (first 3 mths)0.05%

RateCity.com.au research director Sally Tindall said ANZ appeared to be doing some spring cleaning ahead of the RBA’s meeting next month,” she said.

“ANZ’s recalibration of their deposit rates ahead of the next Reserve Bank meeting suggests they are getting their house in order ahead of a potential cash rate cut.

“What’s disappointing is that while the home loan cuts are largely reserved for new customers, the savings cuts will hit everyone with an ANZ online saver account.

“With a new ongoing rate of 0.05 per cent, ANZ’s online saver account is down there at the bottom of the barrel. A person with $10,000 in one of these accounts would be getting less than 50 cents in interest a month once the introductory rate expires. That’s not even enough for a litre of milk.

“Today’s home loan cuts are testament to the ongoing competition in the mortgage market. Yesterday we saw Westpac slash investor fixed rates by up to 0.50 per cent and we expect others will follow in coming days,” she said.

Note: Interest calculations are based on a balance of $10,000 with no additional deposits.

Did you find this helpful? Why not share this news?

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.



Related news