ANZ cuts to 'lowest ever', but still no home loan under 2%

author-avatar By on February 19, 2021
ANZ cuts to 'lowest ever', but still no home loan under 2%

ANZ has cut home loan interest rates again, but unlike Westpac, NAB, and CommBank, it still has no home loan with an advertised rate under 2%.

The closest ANZ gets is 2.04% p.a, which applies to the 'BreakFree Residential' fixed home loan product suite for owner occupiers between one and three years.

This week the Breakfree Residential loan, fixed for three years with 80% LVR, was cut by 5 basis points to 2.04% p.a. (3.83% p.a. comparison rate*). 

A wide variety of other ANZ fixed products - packaged and non-packaged - were also cut by 5 basis points. 

This is at odds with the other big four banks, which now all have some home loan products under the 2% advertised rate threshold.

However, it is important to check the comparison rate, and consider also that many of these are packaged home loans fixed for at least three years.

Below you can see how some challenger brands stack up to the big four banks with advertised rates below 2% - note these are fixed products for owner occupiers.

Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Fixed Rate Home Loan (Principal and Interest) 3 Years

FixedMore details

Premier Package Fixed Options Home Loan (Principal and Interest) 4 Years

FixedMore details

Wealth Package Fixed Rate Home Loan (Principal and Interest) 4 Years

FixedMore details

Choice Package Tailored Home Loan Fixed (Principal and Interest) 4 Years

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of September 25, 2021. View disclaimer.

Challenger banks and lenders to change rates this week

Elsewhere, there were a few home loan rate cuts by challenger banks and non-bank lenders alike.

Freedom Lend cut its construction loan by 11 basis points to 2.39% p.a (2.42.% p.a. comparison rate*).

Beyond Bank also cut a few home loan rates for first home buyers, including the following:

  • First Home Buyers Fixed 1 Year: 45 basis point cut to 2.69% p.a. (3.96% p.a. comparison rate*)
  • First Home Buyers Fixed 2 Years: 45 basis point cut to 2.69% p.a. (3.88% p.a. comparison rate*)
  • First Home Buyers Fixed 3 Years: 45 basis point cut to 2.69% p.a. (3.81% p.a. comparison rate*)

These are packaged home loans for first home buyers paying P&I with a maximum LVR of 95%.

The First Home Buyers packaged loan on a variable rate was also cut by 25 basis points to 2.99% p.a. (3.41% p.a. comparison rate*).

Earlier in the week, ME Bank cut one home loan by 20 basis points, representing the challenger brand's 'lowest ever home loan', and another addition to the 30-plus lenders now with home loan advertised rates below 2%.

Note: A previous version of this article said Bank of Sydney had raised one home loan by 36 basis points. This was not the case, and we regret this error.

Photo by Mattinbgn on Wikimedia Commons


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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Harrison is's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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