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ANZ joins the race to hike fixed rates

ANZ joins the race to hike fixed rates

Australia’s fourth largest bank, ANZ, has hiked its fixed rates for the second time in three weeks.

All four big banks have now hiked fixed rates following the RBA meeting 10 days ago.

Like CBA, ANZ now has no advertised home loan rates under 2 per cent.

Today’s fixed rate hikes from ANZ

Rate typeOld lowest rateNew lowest rateChangeMthly repayments – difference, $500K loan
1-year fixed

1.99%

2.29%

0.30%

$76

2-year fixed

2.09%

2.39%

0.30%

$76

3-year fixed

2.39%

2.79%

0.40%

$105

4-year fixed

2.69%

2.99%

0.30%

$80

5-year-fixed

2.89%

3.19%

0.30%

$80

Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395.

Monthly repayments are based on a $500K, 30-year loan over the fixed rate term.

RateCity.com.au research director, Sally Tindall, said: “Banks are raising fixed rates at breakneck speed, as the economy rebounds and funding costs increase.”

“What started as minor adjustments by the banks has turned into a significant and sustained move north for fixed rates,” she said.

“All four big banks have hiked a number of their fixed rates twice in the last month and there are likely to be plenty more to come.

“Customers currently in the queue for a fixed rate should consider paying a rate lock fee in this environment.

“The number of fixed rates under 2 per cent is dropping rapidly. While there’s still plenty of choice among short-term rates, there are now just four 3-year fixed rates under 2 per cent and no 4- or 5- year rates under this mark,” she said.

How big four bank fixed rates have changed in the last 6 months

An owner-occupier taking out a $500,000 loan today on the average 3-year fixed big four rate will pay $162 more than someone taking out the same loan six months ago. This assumes principal and interest repayments.

Over the 3-year fixed rate term, the new customer will pay $9,243 extra in interest than a customer who took out a 3-year fixed rate in May 2021.

Average big four bank fixed rates then and now

6 months agoTodayDifferenceDifference - monthly repayments
1 year fixed

2.04%

2.21%

0.16%

$40

2 year fixed

1.92%

2.27%

0.35%

$88

3 year fixed

2.01%

2.64%

0.63%

$162

4 year fixed

2.20%

2.87%

0.67%

$175

5 year fixed

2.55%

3.09%

0.54%

$144

Source: RateCity.com.au Note: Monthly repayments are based on a $500K, 30-year loan over the fixed rate term. 6 months ago rates are from May 12, 2021.

21.11.12 big 4 bank fixed rates.JPG

Source: RateCity.com.au

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1 yr fixed

2.34%

1.99%

1.99% 

2.29%

2 yr fixed

2.34%

1.99%

2.34%

2.39%

3 yr fixed

2.69%

2.29%

2.79%

2.79%

4 yr fixed

2.89%

2.69%

2.89%

2.99%

5 yr fixed

3.09%

2.99%

3.09%

3.19%

Variable

2.29%

1.99% for 2yrs then 2.49%

2.29%

2.49%

Source: RateCity.com.au. Note LVR requirements apply for some loans.

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This article was reviewed by Janet Lee before it was published as part of RateCity's Fact Check process.

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