- ANZ has increased its fixed home loan rates by up to 20 basis points
- It comes hours after NAB hikes its fixed-rate home loans by 15 basis points across the board
- Lenders are beginning to move on fixed rates amid a rising interest rate environment
ANZ made the move to lifts its fixed mortgage rates by up to 20 basis points hours after NAB increased its fixed rates by 15 basis points.
ANZ's lowest new rate is now 6.49% p.a. fixed for two years (7.09% p.a. comparison rate*) for owner occupier borrowers with up to 80% loan-to-value ratio (LVR) - a jump of 20 basis points on the old rate.
ANZ is the third major bank to lift is fixed home loan rates in September following NAB and Macquarie Bank.
ANZ's hikes apply across the board to owner occupier and investor home loans fixed for one to five years.
Below are ANZ's new fixed home loan rates for owner occupier borrowers making principal and interest (P&I) repayments:
| Fixed period | LVR | Interest rate | Comparison rate* |
| 1 year | 80% or less | 6.49% p.a. | 7.16% p.a. |
| More than 80% | 6.94% p.a. | 7.39% p.a. | |
| 2 years | 80% or less | 6.49% p.a. | 7.09% p.a. |
| More than 80% | 6.94% p.a. | 7.34% p.a. | |
| 3 years | 80% or less | 6.64% p.a. | 7.07% p.a. |
| More than 80% | 7.09% p.a. | 7.34% p.a. | |
| 4 years | 80% or less | 6.64% p.a. | 7.02% p.a. |
| More than 80% | 7.09% p.a. | 7.31% p.a. | |
| 5 years | 80% or less | 6.69% p.a. | 7.00% p.a. |
| More than 80% | 7.14% p.a. | 7.31% p.a. |
Home loan rates head higher in stagnant market
It's another sign banks are laying the groundwork for a hike to the cash rate, widely predicted before the end of the year.
Fixed rates are based on expectations of future rate movements and the forecast cost of borrowing on wholesale finance markets.
The hikes come at a time when global bond yields are at multi-decade highs with the US's bond yield at its highest level since 2007, the year the Global Financial Crisis hit.
Australia's 10-year bond yield is also at a 15-year high.
While this is expected to push up the cost of wholesale borrowing, the hikes also come at a time when mortgage demand is sluggish.
Demand for home loans in the doldrums
This week, credit reporting agency Equifax released data showing overall mortgage demand in August was down 14.1% compared to August 2025.
First homebuyers were hardest hit with demand down more than 20%, with August marking the biggest annual decline in first homebuyer applications since interest rates began their upward march in 2022.
August also marks the fifth consecutive month of decline in mortgage demand, reflecting the downturn in the property market.
See also:
- Housing downturn bites home sale profits
- Premium home prices lead downturn as sellers retreat from auctions
- Australian homes lose $34 billion as prices face biggest fall in 30 years
Lenders between a rock and a hard place
In the August financial reporting season, all four big banks disclosed home loan lending had plummeted.
Westpac said it had seen home loan applications drop by 20% in the wake of the federal budget with CommBank revealing a 15% plunge.
NAB had released earlier figures of a 15% drop-off in its home lending business while ANZ reported a 12% drop in the dollar value of its mortgage applications.
Against that backdrop, lenders still need to balance meeting their future wholesale funding costs against setting home loan rates that can compete in a depressed market.
Some banks and non-bank lenders are choosing to make their move on fixed rates before the Reserve Bank's next meeting on the cash rate on 28-29 September.
Markets are currently pricing in a 76% chance the cash rate will be increased to 4.6% at this month's meeting.
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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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.95% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
