It slashes fixed home loan rates for the first time this year
ANZ has become the last of Australia’s big four banks to lower its fixed home loan rates, with reductions of up to 0.70 percentage points – its first rate cut of 2024.
The move follows similar actions by competitors NAB, CBA, and Westpac, with banks lowering rates amid market pressures. Earlier in the week, NAB slashed its fixed rates, mirroring its July reduction of 60 basis points on three-year fixed rates.
ANZ’s latest cuts bring its two- and three-year fixed rates for owner-occupiers with a 20% deposit to 5.99%.
These reductions come as part of a broader trend, with 42 lenders cutting at least one fixed rate over the past month. The lowest fixed rate on the market currently stands at 4.99% for a three-year term, though Westpac maintains the most competitive fixed rates among the big four banks.
While ANZ’s new rates are now below 6%, they remain higher than some smaller lenders, which offer rates as low as 4.99%, according to data from Canstar.
“For months, ANZ held out on changing fixed rates when the other majors were busy making cuts, but the bank has now gone and made the chop,” said Sally Tindall (pictured above left), data insights director at Canstar.
“In just one week, we’ve seen two of the big four banks drop fixed rates, but the cutting cycle isn’t likely to be over just yet. Fixed rates are expected to keep on falling in the lead-up to Christmas. Banks might be responding to the cost of wholesale funding but there are other factors at play, including the high chance the RBA will start cutting the cash rate in 2025.”
According to Mozo finance expert Rachel Wastell (pictured above right), the recent rate cuts by ANZ and NAB are likely an effort to attract borrowers ahead of the potential cash rate reductions.
“They are a clear move to stay competitive and attract borrowers into locking in to a guaranteed rate for the next few years, as an expected rate cut looms,” Wastell said.
“With all the big four banks offering three-year fixed rates starting in the 5s, there’s more on the table for borrowers, but you need to make sure you look beyond the advertised rates. Lenders may advertise low interest rates, but if the fees are high, the comparison rate could tell a different story.”
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