It's the last big bank to do so
Fixed mortgage rates have continued to tumble with ANZ the latest big bank to sharpen its rates, RateCity.com.au has reported.
Australia’s fourth largest home loan lender has slashed up to 0.3 percentage points from its fixed rates across its one- to three-year terms for both owner-occupiers and investors.
“ANZ has taken the knife to its short-term fixed rates in a bid to encourage more borrowers to fix,” said Sally Tindall (pictured above), RateCity.com.au research director. “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.”
Rivals CBA kicked off the fixed rate movement on Aug. 11, followed by Westpac and NAB, which reduced select fixed rates last Wednesday, although Westpac’s cuts were for investors only.
RateCity.com.au highlights, in the table below, ANZ’s fixed rate cuts for owner-occupiers paying principal and interest with 20%-plus deposit.
As a result of these changes, ANZ now has the lowest one-year fixed rate out of the big four banks. The bank’s three-year rate, meanwhile, is equal lowest with CBA.
See the table below from RateCity.com.au showing the big four banks’ lowest advertised fixed rates.
With the cash rate on hold for three months running and many economists forecasting the Reserve Bank’s next move to be a cut, albeit in 2024, RateCity.com.au said it makes sense banks are starting to cut their fixed rate offers.
Since Sept. 13, more lenders have slashed their rates rather than hiked, the comparison website’s database showed. This was in contrast to last month, when more lenders have lifted rates than cut.
“We expect to see more lenders slice their fixed rates in the weeks ahead as competition in this space finally warms up,” Tindall said. “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.”
Below are the lowest fixed rates on RateCity.com.au for owner-occupiers paying principal and interest.
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