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*)

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