It's been all quiet on the home lending market of late as lenders await next week's Reserve Bank call on the cash rate.

Three of the big four banks now believe an 8 July rate cut is imminent and the one that hasn't spoken out - ANZ - has let the numbers do the talking.

ANZ has dropped rates by up to 50 basis points on a range of its fixed-rate home loans, taking its new lowest rate to 5.19% p.a. (6.44% p.a. comparison rate*) for owner occupiers with a loan-to-value ratio (LVR) of 80% of less, fixing for two years.

It now beats its rivals by at least 15 basis points across all corresponding fixed terms with 80% LVR paying P&I.

It comes less than a month after the bank previously slashed up to 45 basis points off a range of its fixed rate loans, suggesting there are likely not too many customers interested in fixing rates during a falling cash rate cycle.

Still, you have to give them credit for having another crack.

Here are ANZ's new fixed rates for residential borrowers making principal and interest (P&I) repayments:

Product % change New rate Comparison rate*
1 year ≤80% LVR -0.20 5.29% p.a. 6.59% p.a.
80-90% LVR -0.20 5.74% p.a. 6.82% p.a.
2 years ≤80% LVR -0.20 5.19% p.a. 6.44% p.a.
80-90% LVR -0.20 5.74% p.a. 6.68% p.a.
3 years ≤80% LVR -0.35 5.34% p.a. 6.35% p.a.
80-90% LVR -0.35 5.79% p.a. 6.61% p.a.
4 years ≤80% LVR -0.10 5.74% p.a. 6.38% p.a.
80-90% LVR -0.10 6.19% p.a. 6.67% p.a.
5 years ≤80% LVR -0.10 5.74% p.a. 6.31% p.a.
80-90% LVR -0.10 6.19% p.a. 6.61% p.a.

Rates have also dropped for interest only (IO) fixed rate loans, as well as investor loans for borrowers with ≤80% or 80-90% LVR making either P&I or IO repayments and fixing for between one and five years.

As a sidenote, ANZ also offers seven- and 10-year fixed rate loans to both owner occupiers and investors and although those rates have not been adjusted.

AMP Bank goes the other way

On the same day ANZ was sending its fixed rates lower, AMP Bank was curiously raising its basic variable and fixed loan rates by 25 basis points for new customers.

Basic home loan rates are those published by some major lenders that seem extraordinarily high although the vast majority of their borrowers will be on considerably lower rates.

Major lenders particularly employ this tactic so their customers feel like they're being looked after with a nice discount.

With AMP Bank now featuring a couple of rates beginning with '8', it would have to be a significant discount to be luring new business in the current environment.

It could also be a margin play ahead of any further RBA cash rate cuts. 

Here are AMP's new raised basic variable rates for owner occupiers:

Basic Variable % change New rate Comparison rate*
P&I ≤60% +0.25 6.99% p.a. 7.04% p.a.
P&I 60-80% +0.25 7.09% p.a. 7.14% p.a.
P&I 80-90% +0.25 7.39% p.a. 7.44% p.a.
IO +0.25 7.49% p.a. 7.32% p.a.

AMP Bank's basic fixed rate loans have also taken a 25 basis point hike, applying to basic owner occupier, investor, and construction loans.

At the same time, AMP has also taken up to 36 basis points off a range of its Professional Package residential and investment loans.

The lowest new rate in this line is 5.19% p.a. (6.53% p.a. comparison rate*) for owner occupiers with ≤80% LVR making P&I repayments and fixing for two years - a 16 basis point decrease on the old rate.

Most of the cuts are to Professional Package fixed rates although some variable rates have been lowered to under 6% p.a. for investors making IO repayments with LVRs under 80%.

ANZ joins cash rate cut call

Update: It seems ANZ has got on board with its big four peers in forecasting a July cash rate cut.

On Wednesday afternoon, after the home loan rate cut announcements and the latest retail sales data, ANZ economists said a July cash rate cut would be the "path of least regret" for the RBA next week.

Economists also cited stalled consumer confidence and ongoing uncertainty around US trade policy in supporting its expectation the cash rate will be cut by 25 basis points on 8 July. 

They predict the RBA will make the cut rather than waiting for the August Statement of Monetary Policy and a full forecast update, as has been its approach for the past two rate cuts in February and May. 

ANZ economists said they would reassess the likely pace of easing after the July meeting but "for now", will run with two 25 basis point rate cuts in July and August.


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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.

Update resultsUpdate
LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.54% p.a.
5.58% p.a.
$2,852
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.49% p.a.
5.40% p.a.
$2,836
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$248
$350
60%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Check your eligibility in as little as one minute
Disclosure
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Important Information and Comparison Rate Warning

First published on July 2025

Image by Pixabay via Pexels

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