Moves come ahead of RBA's next rate decision
Two major Australian lenders have lowered fixed home loan rates in the lead-up to next week’s Reserve Bank of Australia (RBA) cash rate announcement.
ANZ has dropped its one-year fixed rates by 0.25 percentage points for owner-occupiers and 0.15 percentage points for investors making principal and interest repayments. This is the bank’s first fixed rate cut since October 2024.
Macquarie, Australia’s fifth-largest home loan lender, also cut its fixed rates, reducing its one-year rate by 0.20 percentage points, two- and three-year terms by 0.16 percentage points, and four- and five-year rates by 0.10 percentage points.
The latest changes come after several regional banks and credit unions, including IMB Bank, Illawarra Credit Union, Greater Bank and Newcastle Permanent, made similar moves, trimming between 0.05 and 0.30 percentage points across various fixed terms.
ANZ’s one-year fixed rate for owner-occupiers now stands at 5.89%, under the average of 6.03%. Among the Big Four banks, this puts it second-lowest behind Westpac at 5.79%.
The latest reductions follow earlier moves from NAB and Westpac, which lowered their one-year fixed rates before the RBA’s February cash rate cut. Commonwealth Bank adjusted its fixed rates shortly after.
On the variable rate side, all four major banks passed on the February rate cut in full to customers. However, not all lenders followed suit. Virgin Money and BOQ Specialist have said they will not pass on the cut, while Police Credit Union is applying the full 25-basis-point reduction to most loans but only cutting 15 basis points from its lowest variable rate offer.
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