RateCity reports mixed bag of mortgage rate changes

Mortgage rates saw mixed movements across Australia this past week, with notable changes in both fixed and variable products reported by RateCity in its latest interest rates wrap-up.

ANZ, the country’s fourth largest bank, cut its fixed home loan rates on Friday, lowering rates by up to 0.60 percentage points for owner-occupiers and up to 0.70 percentage points for investors. These changes brought ANZ’s lowest fixed rate to 5.99% for two- and three-year terms for owner-occupiers with a loan-to-value ratio (LVR) of 80% or less.

“ANZ is the last of the big four banks to join the ‘under 6% club’,” said Laine Gordon (pictured above), money editor at RateCity.com.au. “That said, at 5.99%, ANZ’s lowest three-year fixed rate remains higher than its major bank competitors, with CBA, Westpac and NAB’s rates starting at 5.89%.”

Despite the cuts from ANZ, the lowest fixed rate in the market remains with SWS Bank, which offers a three-year term at 4.99%.

On the variable rate side, Hume Bank introduced a new low at 5.64% for owner-occupiers with a 40% deposit. However, this rate comes with a 0.35 percentage point discount that applies only for the first two years.

Meanwhile, Macquarie Bank raised several of its fixed home loan rates after cutting them just two weeks ago, citing rising wholesale funding costs. The latest hike has pushed Macquarie’s rates 0.10 percentage points higher than they were prior to the recent cuts.

For the lowest variable rates, Abal Bank follows Hume Bank with a rate of 5.75%. Other lenders, including Police Bank, Bank of Heritage Isle, and Border Bank, advertise rates from 5.84%. Pacific Mortgage Group and The Mutual Bank are offering rates starting at 5.89%.

In terms of fixed rates, for a one-year term, Geelong Bank leads with 5.50%. The two-year fixed rate is lowest at Easy Street Financial with 5.49%. For four- and five-year terms, People’s Choice Credit Union and Heritage Bank provide rates starting at 5.49%.

Any thoughts on the latest RateCity interest rates weekly wrap-up? Share them with us by leaving a comment in the discussion box at the bottom of the page.