The changes also apply to both principal and interest (P&I), and interest-only (IO) payment terms.

This comes after Commonwealth Bank cut its interest rates across similar products a week ago, potentially signalling a big four rate war.

ANZ's senior manager of media relations Nick Higginbotham told Savings.com.au the fixed rate changes are simply a response to a competitive market.

"One of the benefits is that they (borrowers) can look at that (the 2.68% advertised rate) and think, ‘It’s probably worth my while to fix a portion of my loan… and get a certainty of what I am going to be paying,’” Mr Higginbotham said.

Many of ANZ's residential fixed loans now have lower advertised interest rates than Westpac, Commonwealth Bank and NAB.

For example, ANZ's Breakfree residential 2 year fixed P&I loan now attracts an advertised interest rate of 2.68% p.a. (4.40% p.a. comparison rate*), which is lower than:

  • Commonwealth Bank's Wealth Package at 2.99% p.a. (4.46% p.a. comparison rate*)
  • Westpac's Premier Advantage package at 2.98% p.a. (3.85% p.a. comparison rate*)
  • NAB's Choice Package First Home Buyer Special at 2.88% p.a. (4.33% p.a. comparison rate*)

For ANZ, the biggest cut was to its Investment Fixed IO loans for 3 and 4 year fixed terms, which experienced an 86 basis point cut.

Full details are below:

Investment Package

  • Breakfree Fixed IO 1 year 150k+: 71 basis point cut to 3.28% p.a. (5.18% p.a. comparison rate*)
  • Breakfree Fixed IO 2 years 150k+: 51 basis point cut to 2.98% p.a. (4.92% p.a. comparison rate*)
  • Breakfree Fixed IO 3 years 150k+: 31 basis point cut to 3.18% p.a. (4.82% p.a. comparison rate*)
  • Breakfree Fixed IO 4 years 150k+: 86 basis point cut to 3.38% p.a. (4.75% p.a. comparison rate*)
  • Breakfree Fixed IO 5 years 150k+: 86 basis point cut to 3.38% p.a. (4.65% p.a. comparison rate*)

  • Breakfree Investment Fixed 1 year 150k+: 51 basis point cut to 3.18% p.a. (5.11% p.a. comparison rate*)
  • Breakfree Investment Fixed 2 years 150k+: 41 basis point cut to 2.88% p.a. (4.91% p.a. comparison rate*)
  • Breakfree Investment Fixed 3 years 150k+: 21 basis point cut to 3.08% p.a. (4.80% p.a. comparison rate*)
  • Breakfree Investment Fixed 4 years 150k+: 66 basis point cut to 3.28% p.a. (4.73% p.a. comparison rate*)
  • Breakfree Investment Fixed 5 years 150k+: 66 basis point cut to 3.28% p.a. (4.62% p.a. comparison rate*)

Investment Non-Package

  • Fixed IO 1 year: 71 basis point cut to 3.43% p.a. (5.25% p.a. comparison rate*)
  • Fixed IO 2 years: 51 basis point cut to 3.13% p.a. (5.03% p.a. comparison rate*)
  • Fixed IO 3 years: 31 basis point cut to 3.33% p.a. (4.92% p.a. comparison rate*)
  • Fixed IO 4 years: 86 basis point cut to 3.53% p.a. (4.84% p.a. comparison rate*)
  • Fixed IO 5 years: 86 basis point cut to 3.53% p.a. (4.72% p.a. comparison rate*)

  • Fixed 1 year: 51 basis point cut to 3.33% p.a. (5.24% p.a. comparison rate*)
  • Fixed 2 years: 41 basis point cut to 3.03% p.a. (5.01% p.a. comparison rate*)
  • Fixed 3 years: 21 basis point cut to 3.23% p.a. (4.88% p.a. comparison rate*)
  • Fixed 4 years: 66 basis point cut to 3.43% p.a. (4.79% p.a. comparison rate*)
  • Fixed 5 years: 66 basis point cut to 3.43% p.a. (4.66% p.a. comparison rate*)

Residential Package

  • Breakfree Residential Fixed IO 1 year 150k+: 11 basis point cut to 3.78% p.a. (4.63% p.a. comparison rate*)
  • Breakfree Residential Fixed IO 2 years 150k+: 21 basis point cut to 3.48% p.a. (4.53% p.a. comparison rate*)
  • Breakfree Residential Fixed IO 3 years 150k+: 1 basis point cut to 3.68% p.a. (4.51% p.a. comparison rate*)
  • Breakfree Residential Fixed IO 4 years 150k+: 26 basis point cut to 3.88% p.a. (4.52% p.a. comparison rate)
  • Breakfree Residential Fixed IO 5 years 150k+: 26 basis point cut to 3.88% p.a. (4.49% p.a. comparison rate*)

  • Breakfree Residential Fixed 1 year 150k+: 30 basis point cut to 2.98% p.a. (4.57% p.a. comparison rate*)
  • Breakfree Residential Fixed 2 years 150k+: 30 basis point cut to 2.68% p.a. (4.40% p.a. comparison rate*)
  • Breakfree Residential Fixed 3 years 150k+: 10 basis point cut to 2.88% p.a. (4.32% p.a. comparison rate*)
  • Breakfree Residential Fixed 4 years 150k+:  45 basis point cut to 3.08% p.a. (4.29% p.a. comparison rate*)
  • Breakfree Residential Fixed 5 years 150k+: 45 basis point cut to 3.08% p.a. (4.20% p.a. comparison rate*)

Residential Non-Package

  • Residential Fixed IO 1 year: 11 basis point cut to 3.93% p.a. (4.76% p.a. comparison rate*)
  • Residential Fixed IO 2 years: 21 basis point cut to 3.63% p.a. (4.64% p.a. comparison rate*)
  • Residential Fixed IO 3 years: 1 basis point cut to 3.83% p.a. (4.60% p.a. comparison rate*)
  • Residential Fixed IO 4 years: 26 basis point cut to 4.03% p.a. (4.60% p.a. comparison rate*)
  • Residential Fixed IO 5 years: 26 basis point cut to 4.03% p.a. (4.56% p.a. comparison rate*)

  • Residential Fixed 1 year: 30 basis point cut to 3.13% p.a. (4.68% p.a. comparison rate*)
  • Residential Fixed 2 years: 30 basis point cut to 2.83% p.a. (4.49% p.a. comparison rate*)
  • Residential Fixed 3 years: 10 basis point cut to 3.03% p.a. (4.39% p.a. comparison rate*)
  • Residential Fixed 4 years: 45 basis point cut to 3.23% p.a. (4.33% p.a. comparison rate*)
  • Residential Fixed 5 years: 45 basis point cut to 3.23% p.a. (4.23% p.a. comparison rate*)

IMB also cuts rates

As well as ANZ, IMB also cut rates to its investment home loans, including:

  • Investment Budget Home Loan P&I: 15 basis point cut to 3.33% p.a. (3.39% p.a. comparison rate*)
  • Investment Essentials Home Loan P&I: 15 basis point cut to 3.43% p.a. (3.61% p.a. comparison rate*)
  • Investment Fixed P&I 5 years: 30 basis point cut to 3.39% p.a. (3.85% p.a. comparison rate*)

Looking for a low-rate fixed investment loan? Below are some of the lowest rates available in the market.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.44% p.a.
6.33% p.a.
$2,513
Principal & Interest
Fixed
$0
$798
80%
6.79% p.a.
6.72% p.a.
$2,605
Principal & Interest
Fixed
$8
$800
95%
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.



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