Major banks buck the trend and lowers interest rates

Are interest rates going up or down? 

It depends who you ask.

Today Australia’s third largest lender, ANZ, has slashed its home loan rate on its "no frills" home loan for owner-occupier paying principal and interest and having a 20% deposit, bringing the rate down by 34 basis points to 3.65 per cent.

This is now the lowest ongoing variable rate offered by a Big Four bank and is further evidence of banks jostling for market share, especially for lower risk borrowers.

ANZ has also cut some of its fixed home loan rates by up to 24 basis points for owner-occupier principal and interest and up to 13 basis points for investor principal and interest loans.

Sally Tindall, research director at RateCity.com.au, said it was a surprising move from ANZ to buck the rate-hike trend.

 “This is a big win for consumers because one of the Big Four banks is now playing at the pointy end of the home loan market,” she said.

 “It’s a huge move from ANZ who now offers the lowest ongoing variable rate from one of the major banks.

“It shows that the bank is competing hard to get new customers as non-banks threaten their market share.

“This comes at a time when the market was expecting ANZ to hike rates and not cut them and the Royal Commission has turned the playing field on its head,” she said.

Lowest ongoing advertised variable home loan rates – Big Four banks

Source: www.RateCity.com.au

About Michael Yardney Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.