Earlier this week, Commonwealth Bank, the country's largest mortgage lender, cut lending rates on popular fixed interest products for home buyers and investors by 10 basis points.
Are interest rates going up or down?
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.
CBA has lowered interest rates on two and three-year fixed rate, owner-occupier principal and interest loans to 3.79 per cent and 3.89 per cent respectively.
The latest cuts do not include owner-occupier, interest-only borrowers.
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
Company |
Product |
Rate |
ANZ |
Simplicity Plus Home Loan Owner Occupied (Principal and Interest) |
3.65% |
NAB |
Base Variable Rate Home Loan (Principal and Interest) |
3.69% |
Commonwealth Bank |
Extra Home Loan (Principal and Interest) |
3.99% |
Westpac |
Premier Advantage Package Rocket Repay Home Loan (Principal and Interest) |
4.34% |
Source: www.RateCity.com.au