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Home loan hikes continue as ANZ joins CBA and Westpac raising fixed rates
The fixed home loan rate hikes keep coming with ANZ today following the lead of CBA and Westpac by raising rates.
ANZ has increased its 2-, 3-, 4- and 5-year fixed rates for owner-occupiers paying principal and interest by up to 0.35 per cent.
However, like CBA, Australia’s fourth largest bank has decreased its 1-year fixed rate to 1.99 per cent, ensuring it still has one rate under 2 per cent.
On Tuesday, Westpac hiked its 2- to 5-year fixed rates for owner-occupiers by 0.10 per cent and last Friday, CBA hiked its 2-, 3- and 4-year fixed rates for owner-occupiers by 0.10 per cent.
ANZ home loan rate changes for owner-occupiers
| Loan | Old rate | New rate | Change |
| 1-year fixed | 2.04% | 1.99% | -0.05% |
| 2-year fixed | 1.94% | 2.09% | +0.15% |
| 3-year fixed | 2.04% | 2.39% | +0.35% |
| 4-year fixed | 2.49% | 2.69% | +0.20% |
| 5-year fixed | 2.69% | 2.89% | +0.20% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395 for a loan to value ratio of 80% or less.
Rate changes in the last month: lenders that have moved at least one rate.
| Lenders that have cut | Lenders that have hiked | |
| 1-year fixed | 8 | 2 |
| 2-year fixed | 4 | 10 |
| 3-year fixed | 2 | 19 |
| 4-year fixed | 0 | 13 |
| 5-year fixed | 0 | 13 |
| Variable | 24 | 2 |
Source: RateCity.com.au. Data is from 23 September to 22 October 2021 inclusive.
RateCity.com.au research director, Sally Tindall, said: “The tide is going out on ultra-low fixed rates.”
“The cash rate might be on hold until 2024 but the banks believe the cost of funding will continue to increase as the economy rebounds,” she said.
“Like its big bank competitors, ANZ has kept one rate under 2 per cent, but this rate is unlikely to attract huge take up seeing as it’s just for 12 months.
“Three of the four big banks have now hiked fixed rates within eight days of each other. We expect more lenders to follow in their wake.
“That said, there are still 151 fixed rates under 2 per cent,” she said.
Lowest big four bank owner-occupier home loan rates
| CBA | Westpac | NAB | ANZ | |
| 1 yr fixed | 1.99% | 1.99% | 2.09% | 1.99% |
| 2 yr fixed | 2.09% | 1.99% | 1.99% | 2.09% |
| 3 yr fixed | 2.29% | 2.08% | 2.18% | 2.39% |
| 4 yr fixed | 2.39% | 2.59% | 2.49% | 2.69% |
| 5 yr fixed | 2.99% | 2.89% | 2.79% | 2.89% |
| Variable | 2.29% | 1.99% for 2 yrs then 2.49% | 2.69% | 2.72% |
Source: RateCity.com.au. Note: CBA and Westpac rates are for a loan to value ratio of up to 70%.
Lowest rates on the RateCity.com.au database
| Lender | Advertised rate | |
| 1 yr fixed | Greater Bank, Bank of Us | 1.59% |
| 2 yr fixed | Greater Bank | 1.59% |
| 3 yr fixed | Community First Credit Union | 1.79% |
| 4 yr fixed | Freedom Lend | 2.27% |
| 5 yr fixed | Freedom Lend | 2.27% |
| Variable | Reduce Home Loans | 1.77% |
Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR and location requirements apply.
Disclaimer
This article is over two years old, last updated on October 22, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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