Westpac, ANZ, Macquarie and others cut fixed home loan rates

Emma Duffy By on July 12, 2019
 
home loan

Photo by Rustic Vegan on Unsplash

In the wake of cuts to variable home loan rates following the Reserve Bank’s decision to lower the cash rate for a second time in as many months, a number of lenders have also made big rate reductions to fixed home loan rates.

Lenders such as Westpac, ANZ, Macquarie Bank and AMP have made some serious cuts to the fixed rates they’re offering borrowers.

It follows the most recent cash rate cut from the RBA by another 25 basis points (0.25% point) this month from 1.25% to 1.00%.

Westpac fixed rate changes

Westpac has slashed interest rates on its Fixed Option Home Loan and Fixed Rate Investment Property Loan products.

The major bank has reduced rates by up to 70 basis points for borrowers with both principal and interest-only loan terms.

The rate changes to Westpac’s Fixed Option Home Loan for owner occupiers, effective from 10 July, are as follows:

  • Two-year principal and interest fixed rates have been reduced by 61 basis points from 3.79% to 3.18% (4.71% comparison rate)
  • Three-year principal and interest fixed rates have been reduced by 51 basis points from 3.79% to 3.28% (4.62% comparison rate)
  • Two-year interest-only fixed rates have been reduced by 70 basis points from 4.49% to 3.79% (5.28% comparison rate)
  • Three-year interest-only fixed rates have been reduced by 70 basis points from 4.59% to 3.89% (5.19% comparison rate)

Changes to Westpac’s Fixed Rate Investment Property Loan for investors, effective from 10 July, are as follows:

  • Two-year principal and interest fixed rates have been reduced by 30 basis points from 3.89% to 3.59% (5.21% comparison rate)
  • Three-year principal and interest fixed rates have been reduced by 30 basis points from 3.99% to 3.69% (5.21% comparison rate)
  • Two-year interest-only fixed rates have been reduced by 26 basis points from 4.15% to 3.89% (5.55% comparison rate)
  • Three-year interest-only fixed rates have been reduced by 30 basis points from 4.29% to 3.99% (5.24% comparison rate)

ANZ fixed rate changes

The major bank has reduced interest rates on its fixed home loan offerings by up to 57 basis points.

ANZ has cut fixed mortgage rates on its owner-occupied and investor home loan products, which apply to both borrowers with principal and interest and interest-only terms.

The changes to owner-occupied mortgage rates, effective to new customers from 5 July, are as follows:

  • Two-year principal and interest fixed rates have been reduced by 57 basis points from 3.90% to 3.33%
  • Three-year principal and interest fixed rates have been reduced by 41 basis points from 3.84% to 3.43%
  • Two-year interest-only fixed rates have been reduced by 50 basis points from 4.44% to 3.94%
  • Three-year interest-only fixed rates have been reduced by 10 basis points from 4.14% to 4.04%

ANZ’s cuts to investment home loan rates, effective to new customers from 5 July, are as follows:

  • Two-year principal and interest fixed rates have been reduced by 30 basis points from 4.04% to 3.74%
  • Three-year principal and interest fixed rates have been reduced by 30 basis points from 4.14% to 3.84%
  • Two-year interest-only fixed rates have been reduced by 29 basis points from 4.33% to 4.04%
  • Three-year interest-only fixed rates have been reduced by 20 basis points from 4.34% to 4.14%

RACQ Bank fixed rate changes

RACQ Bank has cut rates on its fixed home loan offerings by up to 60 basis points.

The bank has reduced mortgage rates on its investment and residential loans.

The changes to RACQ’s investment home loan rates, effective from 10 July, are as follows:

  • Two-year fixed rates on the Choices Investment Home Loan have been reduced by 30 basis points from 3.69% to 3.39%
  • Three-year fixed rates on the Choices Investment Home Loan have been reduced by 60 basis points from 3.69% to 3.09%
  • Two-year fixed rates have been reduced by 30 basis points from 4.09% to 3.49%

The changes to RACQ’s owner occupier home loan rates, effective from 10 July, are as follows:

  • Two-year fixed rates on the Choices Residential Home Loan have been reduced by 30 basis points from 3.89% to 3.29%
  • Three-year fixed rates on the Choices Residential Home Loan have been reduced by 60 basis points from 3.59% to 2.99%
  • Two-year fixed rates have been reduced by 60 basis points from 3.69% to 3.09%

Macquarie Bank fixed rate changes

Macquarie has slashed interest rates on its Basic Fixed Investment Home Loan and Basic Fixed Owner Occupier products.

Macquarie Bank has slashed its fixed home loan rates by up to 40 basis points for borrowers with both principal and interest-only loan terms.

Changes to Macquarie’s Basic Fixed Investment Home Loan for investors, effective from 5 July, are as follows:

  • Two-year fixed principal and interest fixed rates have been reduced by 40 basis points from 4.09% to 3.49%
  • Three-year fixed principal and interest fixed rates have been reduced by 40 basis points from 4.09% to 3.49%’
  • Two-year interest only fixed rates have been reduced by 40 basis points from 4.09% to 3.69%
  • Three-year interest only fixed rates have been reduced by 40 basis points from 40 basis points from 4.09% to 3.69%

Changes to Macquarie’s Basic Fixed Owner Occupier, effective from 5 July, are as follows:

  • Two-year principal and interest fixed rates have been reduced by 40 basis points from 4.19% to 3.59%
  • Three-year principal and interest fixed rates have been reduced by 40 basis points from 4.19% to 3.59%
  • Two-year interest only fixed rates have been reduced by 40 basis points from 4.49% to 3.89%
  • Three-year interest only fixed rates have been reduced by 40 basis points from 4.49% to 3.89%

A 25 basis point difference in interest rates can make an enormous difference to the average person’s mortgage repayments.

Treasurer Josh Frydenberg said, “the impact of a 25 basis point cut on a $400,000 mortgage is the equivalent of saving around $60 a month or $720 a year”.

There are potentially big savings to be had by refinancing to a home loan with a lower rate. Borrowers considering a fixed home loan should bear in mind the likelihood of future cash rate cuts before deciding to lock in a rate.



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Emma Duffy
Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of women and millennials by writing about complex financial topics (what's an ETF I hear you ask?) in a way that's easy for the average Joe (or Jill) to understand.
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