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ANZ increases rate on its basic variable loan

Eden Radford avatar
Eden Radford
- 4 min read
ANZ increases rate on its basic variable loan

ANZ, Australia’s fourth largest home loan lender, has today increased the rate of its basic variable mortgage by 0.10 percentage points for both owner-occupiers and investors paying principal and interest, and investors paying interest-only.

This increase, which is in addition to the November RBA rate hike, does not impact existing customers.

Today’s change to ANZ’s Simplicity PLUS home loan

Loan typeOld rateNew rateChange %-pts
Owner-occupier (P&)6.44%6.54%+0.10
Investor (P&I)6.59%6.69%+0.10
Investor (IO)6.94%7.04%+0.10

Source: RateCity.com.au. LVR requirements apply.

New customer rate increases slowing, but still coming in the door

While the pace of the big four bank new customer rate increases has slowed from earlier in the year, recent hikes from Westpac and NAB show the trend for these rates is still up.

Today’s increase from ANZ is the 25th hike among the major banks for new customers since 1 March 2023, in addition to the RBA cash rate increases (see table of hikes at end).

However, it’s not just the big four banks increasing new customer rates. The RateCity.com.au database shows:

  • 17 lenders have increased at least one new variable rate in the last month, in addition to the RBA hikes.
  • 89 per cent of all lenders have increased at least one new customer variable rate in this time, in addition to the RBA hikes.

What are the big banks offering for basic variable loans?

This hike from ANZ now puts Westpac in the lead for a basic variable loan – although, at an introductory rate, it’s only ahead for two years.

Significantly, CBA is continuing to offer a more expensive option on its basic variable, at 6.59 per cent, compared to its loan available with an offset, at 6.49 per cent.

Big four banks’ lowest advertised variable rates

Rate typeCBAWestpacNABANZ
Basic variable6.59%6.44% for 2yrs

then +0.40%

Var. with offset6.49%7.44%7.57%7.24%

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

Lowest ongoing variable rates available on RateCity.com.au database

Of those that have announced their RBA cash rate increase

Abal Bank5.75%
Illawarra Credit Union5.79%
Northern Inland Credit Union5.84%
Regional Australia Bank5.87%
Auswide Bank5.89%

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

RateCity.com.au research director, Sally Tindall, said: “ANZ has said it would fight for new customers, however today’s rate hike suggests it’s only prepared to go so far.”

“This will be disappointing news for potential customers who had their eye on this rate from ANZ. Those already in the process of getting a Simplicity Plus mortgage should ask the bank if it will honour the previous rate,” she said.

“ANZ still has a couple of cashback offers on the table with $2,000 for select refinancers and $3,000 for first home buyers. This is likely to keep its home loan book moving at a decent pace, despite this new customer hike.

“While the big banks race each other for the prize of most uncompetitive advertised rates, smaller lenders are still prepared to fight for new business. The RateCity.com.au database shows there are currently 31 lenders offering variable rates under 6 per cent following the November RBA rate hike.

“If you live in the home you own, and have a decent stake in it, you can still get a competitive variable rate, however, you might have to go with a lender you’ve never heard of before,” she said.

Variable rate hike from the big four banks since 1 March 2023

Note: these hikes are in addition to RBA increases

DateBankLoanChange %-pts
1 March 23CBABasic variableup to 0.10
1 Mar + 10 Mar 23NABBasic variableup to 0.20
25 March 23CBABasic variableup to 0.70
28 March 23ANZBasic variableup to 0.21
31 March 23CBAPackage loanup to 0.20
13 April 23WestpacBasic variable0.10
14 April 23CBAPackage loanup to 0.12
21 April 23ANZBasic variableup to 0.10
28 April 23NABBasic variableup to 0.05
12 May 23CBABasic + packageup to 0.10
23 May 23NABBasic variableup to 0.10
24 May 23CBAPackage loanup to 0.10
16 June 23CBABasic variableup to 0.10
23 June 23CBAPackage loanup to 0.10
23 June 23WestpacBasic variable0.15
14 July 23CBABasic variableup to 0.07
27 July 23ANZBasic variableup to 0.15
28 July 23NABBasic variableup to 0.10
11 August 23CBABasic variableup to 0.05
30 August 23NABBasic variableup to 0.15
13 September 23WestpacBasic variable0.10
27 October 23NABBasic variable0.10
24 November 23WestpacBasic variableup to 0.10
8 December 2023ANZBasic variable0.10

Source: RateCity.com.au

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Product database updated 23 Jul, 2024

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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