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The major bank has reduced rates across its fixed home loan offerings by up to 57bps.
ANZ has cut mortgage rates across its owner-occupied and investor home loan products, which apply to both borrowers with principal and interest and interest-only terms.
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The bank’s changes are effective for new customers from 5 July.
ANZ’s owner-occupied mortgage rate changes are as follows:
- two-year principal and interest fixed rates have been reduced by 57bps from 3.90 per cent to 3.33 per cent
- three-year principal and interest fixed rates have been reduced by 41bps from 3.84 per cent to 3.43 per cent
- two-year interest-only fixed rates have been reduced by 50bps from 4.44 per cent to 3.94 per cent
- three-year interest-only fixed rates have been reduced by 10bps from 4.14 per cent to 4.04 per cent
The major bank’s cuts to investment home loan rates are as follows:
- two-year principal and interest fixed rates have been reduced by 30bps from 4.04 per cent to 3.74 per cent
- three-year principal and interest fixed rates have been reduced by 30bps from 4.14 per cent to 3.84 per cent
- two-year interest-only fixed rates have been reduced by 29bps from 4.33 per cent to 4.04 per cent
- three-year interest-only fixed rates have been reduced by 20bps from 4.34 per cent to 4.14 per cent
ANZ also announced cuts to its variable rates in response to the Reserve Bank of Australia’s (RBA) cash rate reductions.
Despite only passing on 18bps to its variable home loan customers following the RBA’s first cut in June, the bank reduced rates by the full 25bps following the second reduction.
The RBA’s monetary policy adjustments elicited an immediate response from the mortgage market, with ANZ among a host of lenders to reprice its home loans.
[Related: Non-majors lower mortgage rates]
