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.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.54% p.a. | 5.58% p.a. | $2,852 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.49% p.a. | 5.40% p.a. | $2,836 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $250 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $248 | $350 | 60% |
| Disclosure |
First published on July 2025
Image by Pixabay via Pexels
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