ANZ moves out of lockstep with RBA, increases variable home loan rates

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on May 24, 2022 Fact Checked
ANZ moves out of lockstep with RBA, increases variable home loan rates

ANZ increased variable rate home loans for investors by 20 basis points, while AMP took the opposite approach for owner occupiers with a 15 basis point reduction.

ANZ has become the first of the big four to outpace the RBA, increasing variable rate home loans for investors across its 'Simplicity Plus' offering by 20 basis points.

This increase comes following ANZ passing on the RBA's cash rate increase of 25 basis points across its variable rate home loan portfolio on 13 May. 

For investors, these 20 basis point increases to new and existing customers include:

  • Investment Simplicity Plus P&I <70% Special Offer: increase to 2.94% p.a. (2.94% p.a. comparison rate*)
  • Investment Simplicity Plus P&I 70-80% Special Offer: increase to 3.04% p.a. (3.04% p.a. comparison rate*)
  • Investment Simplicity Plus P&I >80% Special Offer: increase to 3.67% p.a. (3.67% p.a. comparison rate*)
  • Investment Simplicity Plus IO <70% Special Offer: increase to 3.34% p.a. (3.09% p.a. comparison rate*)
  • Investment Simplicity Plus IO 70-80% Special Offer: increase to 3.44% p.a. (3.19% p.a. comparison rate*)
  • Investment Simplicity Plus IO >80% Special Offer: increase to 3.77% p.a. (3.71% p.a. comparison rate*)

Outside of these increases, ANZ reduced the variable rate for its Simplicity Plus P&I <70% Special Offer product for owner occupiers by 15 basis points. 

The rate for this product now stands at 2.29% p.a. (2.30% p.a. comparison rate*) and applies to new customers only.

AMP cuts variable rates for owner occupiers

Steering away from the recent trend of variable home loan rate increases, AMP has cut three variable rate products for owner occupiers by up to 15 basis points.

These decreases include:

  • Professional Package Owner Occupied P&I ≤60% 500k+: 10 basis point decrease to 2.44% p.a. (2.86% p.a. comparison rate*)
  • Professional Package Owner Occupied P&I 60-80% 500k+: 15 basis point decrease to 2.44% p.a. (2.86% p.a. comparison rate*)
  • Essential Home Loan 80% 100k+: 10 basis point decrease to 2.37% p.a. (2.40% p.a. comparison rate*)

Combining with fintech lender Nano, AMP will deliver a digital mortgage for retail customers later this year.


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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

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 June 29, 2022. View disclaimer.


Image by Chris Barbalis via Unsplash

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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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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