ANZ slices fixed home loans down to 2% range

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on April 02, 2020
ANZ slices fixed home loans down to 2% range

Julia Gorges Australian Open 2012, by Max Pixel

Big four bank ANZ on Wednesday further slashed interest rates across a variety of fixed-rate loans.

One of the bank's latest offers is a 2.29% p.a. (3.89% p.a. comparison rate*) 3-year fixed owner occupier home loan for principal & interest (P&I) borrowers as part of its 'Breakfree' package. 

It represents a cut of 59 basis points, with the bank previously offering 2.88% p.a. for that product. 

Various other residential loans to see a 59 basis point cut were:

  • Breakfree Residential Fixed 1 Year 150k+: 2.39% p.a. (4.16% p.a. comparison rate*)
  • Residential (non package) Fixed 3 Years: 2.44% p.a. (3.95% p.a. comparison rate*)

Investment loans also saw some love, with the 59 basis point cuts going to:

  • Breakfree Investment Fixed 3 Years 150k+: 2.49% p.a. (4.37% p.a. comparison rate*)
  • Breakfree Investment Fixed 1 Year 150k+: 2.59% p.a. (4.71% p.a. comparison rate*)
  • Investment (non package) Fixed 1 Year: 2.74% p.a. (4.83% p.a. comparison rate*)

Many other fixed loans of both the residential and investment persuasions were also cut between 19 and 49 basis points.

This week's fresh round of cuts follow the bank's introduction on 20 March of its lowest fixed-rate home loan on-record - a two-year fixed rate of 2.19% p.a. (4.00% p.a. comparison rate*) - for owner occupiers paying principal and interest. 

The special two year rate was announced as part of the bank's immediate response to the Reserve Bank of Australia's emergency cash rate cut

The latest cuts also bring the bank closer to challenger banks, and ahead of main rivals CommBank, Westpac and NAB in many cases, with advertised rates hovering close to the elusive high 1.00% range.

Lender

Fixed
More details
No ongoing feesFree redraw facility
No ongoing feesFree redraw facility

Live-in Fixed Loan (Principal and Interest) 1 Year

    Fixed
    More details
    NO UPFRONT OR ONGOING FEES
    NO UPFRONT OR ONGOING FEES

    Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

      Fixed
      More details

      Fixed Rate Home Loan (Principal and Interest) 3 Years

        Fixed
        More details

        Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%)

          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. 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 July 3, 2022. View disclaimer.

          As to the question if it's a 'good time' to fix your home loan, the opinion is mixed, with experts predicting fixed loans are being cut to entice borrowers to lock themselves in, so banks can ensure cash flow during the coronavirus crisis.

          While many variable rate loans now have higher advertised rates than fixed-rate home loans, when it comes to the comparison rate variable-rate loans do still appear to have the wood over fixed-rates. 

          Fixed rate loans tend to have higher comparison rates in part because at the end of the fixed-term the loan's rate reverts to a much higher variable rate. 

          The table below displays a selection of home loans with some of the lowest interest rates on the market for owner occupiers.

          Lender

          Variable
          More details
          UNLIMITED REDRAWSSPECIAL OFFER
          • Fast turnaround times, can meet 30-day settlement
          • For purchase and refinance, min 20% deposit
          • No ongoing or monthly fees, add offset for 0.10%
          UNLIMITED REDRAWSSPECIAL OFFER

          Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

          • Fast turnaround times, can meet 30-day settlement
          • For purchase and refinance, min 20% deposit
          • No ongoing or monthly fees, add offset for 0.10%
          Variable
          More details
          100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
          • No upfront or ongoing fees
          • 100% full offset account
          • Extra repayments + redraw services
          100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

          Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

          • No upfront or ongoing fees
          • 100% full offset account
          • Extra repayments + redraw services
          Variable
          More details
          QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
          QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

          Variable Home Loan (Principal and Interest)

          • $5000 Cashback. T&Cs Apply.
          Variable
          More details
          REFINANCE ONLY
          • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
          REFINANCE ONLY

          Variable Rate Home Loan – Refinance Only

          • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
          Variable
          More details
          NO ONGOING FEESFREE REDRAW FACILITY
          • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
          NO ONGOING FEESFREE REDRAW FACILITY

          Live-in Variable Loan (Principal and Interest) (LVR < 90%)

          • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

          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. 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 July 3, 2022. View disclaimer.


          Disclaimers

          The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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          author-avatar
          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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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