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ANZ ditches fixed rates under 6%

Eden Radford avatar
Eden Radford
- 4 min read
ANZ ditches fixed rates under 6%

Australia’s fourth largest bank, ANZ, has today increased its fixed rates for both owner-occupiers and investors by up to 0.55 percentage points.

Changes to ANZ’s lowest fixed rates

For owner-occupiers paying principal and interest - contact us for other variations

Fixed termOld rateNew rateChange % pts
1-yr6.29%6.54%+0.25%
2-yr5.99%6.54%+0.55%
3-yr6.09%6.39%+0.30%
4-yr6.29%6.49%+0.20%
5-yr6.39%6.59%+0.20%

Source: RateCity.com.au

ANZ is not the only bank hiking fixed rates.

Australia’s fifth largest lender, Macquarie Bank, also hiked its fixed rates today by up to 0.36 percentage points for both owner-occupier and investor loans (contact us for details), while Australia’s biggest bank, CBA, increased fixed rates just over a week ago.

In total, there have been significantly more hikes than cuts to fixed rate loans over the last month.

Lenders that have changed at least one fixed rate in the last month

Fixed termLenders that have cutLenders that have hiked
1-yr776
2-yr1074
3-yr1163
4-yr728
5-yr1134

Source: RateCity.com.au. Note some lenders have changed more than one fixed rate.

Big four banks’ lowest fixed rates now predominantly above 6 per cent

Looking at the big four banks, just two fixed rates now remain under 6 per cent – precariously positioned at 5.99 per cent – Westpac’s 2-year fixed rate and NAB’s 3-year fixed rate for owner occupiers paying principal and interest.

The sharpest fixed rates in the market, however, are still in the low ‘5s’ with Australian Mutual Bank leading the way with a 2-year fixed rate at 5.23 per cent.

Big four banks’ lowest advertised fixed rates 

Fixed termCBAWestpacNABANZ
1-yr6.49%6.19%6.24%6.54%
2-yr6.54%5.99%6.14%6.54%
3-yr6.34%6.39%5.99%6.39%
4-yr6.29%6.39%6.09%6.49%
5-yr6.29%6.69%6.19%6.59%

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

Lowest fixed rates on RateCity.com.au

Fixed termLenderRate
1-yrIllawarra Credit Union5.40%
2-yrAustralian Mutual Bank5.23%
3-yrAustralian Mutual Bank5.33%
4-yrHSBC5.59%
5-yrRACQ5.34%

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply. Australian Mutual’s rate is for first home buyers only.

RateCity.com.au research director, Sally Tindall, said: “Borrowers in the process of fixing with ANZ will be kicking themselves this morning if they haven’t paid the fee to lock their rate in.”

“ANZ’s fixed rate hikes come amid a distinct lack of competition in the fixed rate market and heat from funding pressures,” she said.

“ANZ might still be at the forefront of the fight for new customers with its $4,000 cashback offer, but it’s clearly not hoping to woo them on to a fixed rate.

“Out of the big four banks, just Westpac and NAB have one fixed rate under 6 per cent each, albeit at 5.99 per cent.

“Unsurprisingly, most borrowers are opting to stay variable while the cash rate is in a state of flux, unless of course they’re one of the lucky ones still on an ultra-low fixed rate from a couple of years ago.

“The latest ABS statistics show just five per cent of new and refinanced loans opted for a fixed rate in the month of May, a far cry from the peak in July 2021 when 46 per cent of these loans were locked in a fixed rate,” she said.

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Product database updated 16 Jun, 2024

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