ANZ slashes fixed home loan rates by up to 86 basis points

author-avatar By on February 21, 2020
ANZ slashes fixed home loan rates by up to 86 basis points

Source: Flickr - David McKelvey

ANZ has today made a raft of cuts to its fixed rate home loans for both investors and owner-occupiers by as much as 86 basis points.

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.

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 

Base criteria of: a $400,000 loan amount, fixed, principal & interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the product provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 01 July 2020. View disclaimer.


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author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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