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.

Loan amount

Loan purpose

Overview Features Fees Other Filters

Lender	Advertised rate	Comparison rate*	Monthly repayment	Rate Type	Ongoing Fee	Upfront Fees	LVR	as of January 28, 2022

	2.34^%_p.a.	4.56^%_p.a.	^$1,547	Fixed	^$0	^$798	80^%	More details
	Fixed Rate Investment Loan (Principal and Interest) 1 Year
Info More details
	2.54^%_p.a.	3.53^%_p.a.	^$1,589	Fixed	^$0	^$0	80^%	More details
	Fixed Rate Investment Loan 3 Years (LVR < 80%)
Info More details
	3.54^%_p.a.	4.85^%_p.a.	^$1,805	Fixed	^$8	^$800	90^%	More details
	Fixed Rate Investment Loan (Principal and Interest) 3 Years
Info More details

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. *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 January 28, 2022. View disclaimer.

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Harrison Astbury Harrison is Savings.com.au'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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