The big four bank raised the interest rates on its four and five-year Breakfree Residential fixed rate home loans for those making principal and interest repayments.

The following loans were affected:

  • The Breakfree Residential four year fixed rate with a Loan to Value Ratio (LVR) less than 80% was raised by 25 basis points to 2.49% p.a. (3.26% p.a. comparison rate*)
  • The Breakfree Residential five year fixed rate with an LVR less than 80% was raised by 45 basis points to 2.69% p.a. (3.30% p.a. comparison rate*)
  • The Breakfree Residential four year fixed rate with an LVR 80-90% was raised by 25 basis points to 2.54% p.a. (3.40% p.a. comparison rate*)
  • The Breakfree Residential five year fixed rate with an LVR 80-90% was raised by 45 basis points to 2.74% p.a. (3.44% p.a. comparison rate*)

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers. 

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.54% p.a.
5.58% p.a.
$2,852
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.49% p.a.
5.40% p.a.
$2,836
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$248
$350
60%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Check your eligibility in as little as one minute
 Disclosure
Important Information and Comparison Rate Warning

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 be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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. *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. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning
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ANZ also cut the fixed interest rate by up to 15 basis points on its two year Breakfree Residential loan to just 1.94% p.a (3.24% p.a. comparison rate*), the first time ANZ has offered a sub-2% loan. 

ANZ joins fellow big four lender Westpac in hiking rates this week, after Westpac announced on Tuesday it would be raising rates by up to 10 basis points.

Commonwealth Bank announced in May it was marginally increasing its three and four-year fixed rates by 5 basis points, while ING announced increases to some of its four and five-year fixed rates by up to 80 basis points.

Lenders have been able to offer historically low interest rates of late, partly thanks to the Reserve Bank's Term Funding Facility (TFF) providing cheap funds. 

Data from the Australian Prudential Regulation Authority (APRA) revealed on Wednesday the number of new loans with high debt-to-income ratios increased in the March quarter as banks drew from the TFF. 

ANZ yesterday forecast the Reserve Bank (RBA) would be forced to increase the cash rate in 2023.

ANZ economists said inflation and wage growth, along with a drop in the unemployment rate, would mean the RBA would have to take the cash rate to 0.50% ahead of the RBA's schedule. 

Picture source: Twitter 

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