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Fixed rates continue to tumble as ANZ sharpens its rates

Eden Radford avatar
Eden Radford
- 3 min read
Fixed rates continue to tumble as ANZ sharpens its rates

Australia’s fourth largest home loan lender, ANZ, has today cut fixed rates across its 1- to 3-year terms for both owner-occupiers and investors by up to 0.30 percentage points.

These cuts follow similar moves from its big bank rivals, with CBA kicking off the fixed rate movement on 11 August.

Westpac and NAB both cut select fixed rates last Wednesday, although Westpac’s cuts were for investors only.

Today’s fixed rate cuts from ANZ

For owner-occupiers paying principal & interest, 20%+ deposit – contact us for other loan types

Loan termOld rateNew rateChange
1-yr6.54%6.34%-0.20%
2-yr6.54%6.24%-0.30%
3-yr6.39%6.29%-0.10%

Source: RateCity.com.au

As a result of today’s changes, ANZ now has the lowest 1-year fixed rate out of the big four banks, and the equal lowest 3-year rate, alongside CBA.

Big four banks’ lowest advertised fixed rates

Fixed termCBAWestpacNABANZ
1-yr6.59%6.49%6.59%6.34%
2-yr6.84%6.39%6.19%6.24%
3-yr6.29%6.39%6.39%6.29%
4-yr6.69%6.39%6.59%6.49%
5-yr6.69%6.69%6.69%6.59%

Source: RateCity.com.au

This change from ANZ today is yet another clue fixed rates have now peaked.

With the cash rate on hold for three consecutive months and many economists predicting the next move from the RBA will be a cut, albeit in 2024, it makes sense banks are starting to sharpen their fixed rate offers.

While the RateCity.com.au database still shows there have been more lenders hiking fixed rates, as opposed to cutting in the last month, the data shows since 13 September, more lenders have cut rates than hiked.

RateCity.com.au research director, Sally Tindall, said: “ANZ has taken the knife to its short-term fixed rates in a bid to encourage more borrowers to fix.”

“This move by ANZ follows on from cuts from the three other majors in the last six weeks in yet another sign fixed rates may now have peaked,” she said.

“With the cash rate on hold for three months in a row, and many economists pointing to cuts in 2024, the risk of under-pricing these rates is diminishing.

“We expect to see more lenders slice their fixed rates in the weeks ahead as competition in this space finally warms up.

“The big banks might be opening the door to fixed rate customers, but those looking for the sharpest deals aren’t guaranteed to secure them by opting to fix.

“Fixed rates might be coming down, but most banks’ lowest rates are still variable. This in itself is enough to discourage many people to fix. Throw in the possibility of rate cuts in the next 12 months and for most borrowers the decision to stay variable is an easy one – for now.

“While cuts are by no means guaranteed, even the suggestion of them is enough for borrowers to keep their options open on a variable loan.

“If you are wedded to the idea of fixing, make sure you do your research, because the big bank rates might be coming down but they’re still no match for the market leaders,” she said.

Lowest fixed rates on RateCity.com.au

For owner-occupiers paying principal and interest

TermLenderAdvertised rate
1-yrMacquarie Credit Union5.48%
2-yrSouth West Slopes Credit Union5.49%
3-yrRACQ5.34%
4-yrQudos Bank5.84%
5-yrRACQ5.34%

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

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Product database updated 22 Jun, 2024

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