With all four major banks now tipping the RBA’s next move will be a rate cut, ANZ has slashed fixed home loans by up to 50 basis points to 5.19% p.a. (6.44% p.a. comparison rate*), while Bank Australia cut rates by up to 30 basis points.
With the RBA expected to cut rates soon, banks are slashing fixed home loan rates to stay competitive and attract borrowers. This shift signals growing competition in the mortgage market, as lenders like ANZ and Bank Australia aim to draw in customers before rates potentially drop even further.
Mortgage holders should stay vigilant, as further rate cuts could lead to even more aggressive offers from banks.
In contrast, AMP Bank lifted its basic variable and fixed loan rates by 25 basis points, bucking the broader trend of falling mortgage costs. These basic rates are often set high to allow banks to offer attractive discounts to customers.
Read more: ANZ cuts, AMP raises home loan rates
The RBA ASX rate tracker is fully pricing in a 0.25% rate cut, bringing the cash rate to 3.60% at the next RBA Board meeting. This anticipated move is in line with the predictions from the four major banks, all of which have similarly forecasted a reduction in the cash rate by the same margin.
ANZ leads Big 4 in fixed rates, but lower rates remain
ANZ now offers the lowest fixed rates across all 1- to 5-year terms among the major banks. The big four bank has introduced a new rate of 5.19% p.a. (6.44% p.a. comparison rate*) for owner-occupiers with an LVR of 80% or lower, available for a two-year fixed term.
Pacific Mortgage Group leads the 1-year term with a rate of 4.99% p.a. (5.35% comparison rate*), while Easy Street offers the lowest rate for the 2-year term at 4.95% p.a. (5.64% comparison rate*). For a 3-year term, BankVic provides the most competitive rate at 4.98% p.a. (5.48% comparison rate*).
Bank Australia cuts fixed-rate home loans across the board
Bank Australia has recently lowered rates across several fixed-rate home loans, with reductions of up to 0.30%.
Their basic fixed loans now start at 5.24% p.a. (5.53% p.a. comparison rate*) for 3-year terms with LVRs of 60% or less.
Borrowers can also access a range of terms, from 1 to 5 years, and loans with LVRs up to 95%.
AMP Bank shakes up home loan rates
AMP increased its basic variable and fixed home loan rates by 25 basis points for new customers. This marks a shift in strategy as AMP Bank’s basic home loan rates now include options starting at 8%, which could be a tough sell in a competitive market unless they offer substantial discounts.
For many borrowers, these higher published rates don't reflect the actual rate they’ll pay. This pricing strategy is common among major lenders, aiming to make customers feel as though they’re getting a special deal.
Meanwhile, AMP lowered rates across several of its Professional Package residential and investment loan options.
Other movers
- Reduce reduced SMSF loan rates by 10 basis points
- Police Credit Union cut variable rates by up to 25 basis points
- Teachers Mutual and subsidiaries increased comparison rates by 4 basis points on several products, signalling extra fees payable
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
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