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ANZ cuts variable rates - but only for new customers

ANZ cuts variable rates - but only for new customers

ANZ has cut new customer variable rates by 0.50 percentage points today, in the same month existing customers rates rose by half a percent following the RBA hike.

Australia’s fourth largest lender has cut its basic variable rate for new owner-occupier borrowers between 0.10 and 0.25 percentage points, depending on their loan-to-value ratio (LVR).

These lower rates apply for new loans and borrowers willing to refinance to ANZ.

ANZ VARIABLE CHANGES: owner-occupiers paying principal and interest – new customers only.

Old rateNew rateChange
Simplicity PLUS (≤70% LVR)3.29%3.19%-0.10%
Simplicity PLUS (70.01% - 80% LVR)3.54%3.29%-0.25%

Source: RateCity.com.au.

Investor rates have also been cut by up to 0.50 percentage points.

ANZ VARIABLE CHANGES: investors – new customers only.

Old rateNew rateChange
Simplicity PLUS (≤70% LVR) principal & interest 3.94%3.54%-0.40%
Simplicity PLUS (70.01% - 80% LVR) principal & interest 4.04%3.64%-0.40%
Simplicity PLUS (≤70% LVR) interest only 4.34%3.84%-0.50%
Simplicity PLUS (70.01% -80% LVR) interest only4.44%3.94%-0.50%

Source: RateCity.com.au.

ANZ isn’t the only bank cutting new customer variable rates.

RateCity.com.au database analysis:

  • 9 lenders have cut variable rates in the last three months for new customers.
  • CBA cut its lowest variable rate for new customers by 0.15% points on 30 June.
  • Macquarie Bank cut variable rates by up to 0.25% points on 27 June.
  • ING cut variable rates by up to 0.15% points on 22 July.
  • ME Bank cut variable rates by up to 0.15% points on 20 July.

RateCity.com.au research director, Sally Tindall, said: “The RBA hikes have been the push many borrowers needed to shop around. ANZ knows this, and it’s cutting rates in a bid to attract a bigger slice of this business.”

“At 3.19 per cent for owner-occupiers with a decent deposit, this is now the lowest ongoing rate from the big four banks,” she said.

“ANZ’s rate cut might be good for refinancers, however, it’s tough news for customers already on a Simplicity Plus home loan, who’ve seen their rate rise by 1.25 per cent since the start of May.

“ANZ isn’t the only bank handing out rate cuts exclusively to new customers. In the three last month 9 lenders including, CBA, Macquarie and ING have all cut new customer variable rates to temp refinancers.

“Complacent borrowers frequently get the raw end of the deal because banks know the majority of their customers will just cop it – not exactly the warm and fuzzy relationship some proclaim.

“Put your bank through your own loyalty test. Find out what its offering new variable customers for the exact same loan and if it’s lower, ask your bank to match it.

“If your lender doesn’t budge, it might be time to break up with them. Lenders are streamlining application processes and fast-tracking approval times in a bid to win you over.

“Reset the status quo by taking advantage of the banks, rather than have them take advantage of you,” she said.

Big four bank: lowest variable rates

BankRate
CBA3.29%
Westpac3.14% for 2 years

then 3.54%

NAB3.44%
ANZ3.19%

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.

Lowest advertised variable rates on RateCity.com.au

(from lenders who have announced July RBA hikes)

LenderAdvertised rate
P&N Bank2.74%
Bank of Us2.79%
Credit Union SA2.84%
Hume Bank2.99%
Qudos Bank2.99%

Source: RateCity.com.au Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.

NAB hikes fixed rates for the second time this month

For the second time this month, the country’s third largest lender, NAB, has substantially hiked fixed rates.

Today NAB increased fixed rates by up to 0.60 percentage points for owner-occupiers, after hiking by up to 1.10 percentage points on 1 July.

Sally Tindall said: “Fixed rate hikes are still coming thick and fast as the cost of funding continues to put pressure on the banks’ bottom line.”

“In the last month alone, we have seen 90 lenders hike fixed rates, including NAB, which has now increased its rates twice in July,” she said.

NAB FIXED CHANGES: owner-occupiers paying principal and interest

– contact us for interest-only and investor changes

TermOld rateNew rateChange
1-yr fixed4.69%5.29%0.60%
2-yr fixed     5.59%5.89%0.30%
3-yr fixed5.89%6.34%0.55%
4-yr fixed6.19%6.59%0.40%
5-yr fixed6.29%6.69%0.40%

Source: RateCity.com.au. Note: Rates are for customers on a package rate with a loan-to-value ratio of 70% or less.

Lowest big four bank rates for owner-occupiers paying principal and interest

(note: interest-only and investor rates are higher)

Rate typeCBAWestpacNABANZ
1-yr fixed4.99%4.59%5.29%4.69%
2-yr fixed5.79%5.39%5.89%5.49%
3-yr fixed6.39%5.69%6.34%5.89%
4-yr fixed6.59%5.89%6.59%5.99%
5-yr fixed6.69%5.99%6.69%6.09%
Lowest variable3.29%3.14% for 2 years

then 3.54%

3.44%3.19%

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.

Lowest home loan rates on RateCity.com.au

Rate typeLenderAdvertised rate
1-yr fixedBeyond Bank3.49%
2-yr fixedThe Capricornian3.39%
3-yr fixedPolice Bank4.79%
4-yr fixedSouthern Cross Credit Union5.29%
5-yr fixedBeyond Bank5.39%
Lowest variableP&N Bank2.74%

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.

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This article was reviewed by Data Research Specialist Piyush Pillai before it was published as part of RateCity's Fact Check process.

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