ANZ is joining the fixed rate plunge across the mortgage market, taking the axe to its residential and investor rates in the lead up to this month's widely forecast drop in the Reserve Bank cash rate.

The big bank's new lowest fixed rate is 5.39% p.a. (6.67% p.a. comparison rate*) for owner occupiers with 80% or less loan-to-value ratio (LVR) making prinicipal and interest (P&I) repayments and fixing for two years.

The one-year fixed rate for residential borrowers with the same arrangement is 5.49% p.a. (6.84% p.a. comparison rate*).

Here's a look at ANZ's new fixed rates for owner occupiers:

Product % change New rate Comparison rate*
1 year ≤80% LVR -0.40 5.49% p.a. 6.84% p.a.
1 year 80-90% LVR -0.40 5.94% p.a. 7.06% p.a.
2 years ≤80% LVR -0.35 5.39% p.a. 6.67% p.a.
2 years 80-90% LVR -0.35 5.84% p.a. 6.92% p.a.
3 years ≤80% LVR -0.05 5.69% p.a. 6.62% p.a.
3 years 80-90% LVR -0.05 6.14% p.a. 6.89% p.a.
4 years ≤80% LVR -0.05 5.84% p.a. 6.57% p.a.
4 years 80-90% LVR -0.05 6.29% p.a. 6.86% p.a.
5 years ≤80% LVR -0.15 5.84% p.a. 6.49% p.a.
5 years 80-90% LVR -0.15 6.29% p.a. 6.79% p.a.

The new lowest rate for investors is 5.54% p.a. (7.18% p.a. comparison rate*) for those with up to 80% LVR, making P&I repayments, and fixing for two years - a cut of 40 basis points off the old rate.

Rates are higher for all borrowers making interest only repayments.

It's also worth noting ANZ is the only lender to offer fixed rate periods of seven and 10 years, although those rates remain unchanged with a '7' in front across the board.

See all this week's home loan rate movements: Lenders race to drop fixed rates as RBA rate drop looms

How do ANZ's new rates stack up?

ANZ is now matching its big bank peer NAB's lowest fixed rate of 5.39% p.a. (see more on big four fixed rates below), but it hasn't gone as far as the lowest rate on the market which now has a '4' in front.

On Wednesday, Bank of Queensland followed Police Bank in offering a 4.99% p.a. fixed rate home loan.

BoQ cut the rate on its fixed home loans to 4.99% p.a. for two-year (5.84% p.a. comparison rate*) and three-year (5.77% p.a. comparison rate*) fixed periods for owner occupiers with up to 90% LVR.

It matched Police Bank's bold move the week before although some of its fixed rate home loan products are only available to serving and retired Australian police and civilian support staff, while others are open to family members and Police Bank members.

How do ANZ's new fixed rates compare with the big four?

ANZ is now offering the same lowest rate as National Australia Bank's 5.39% p.a. (6.30% p.a. comparison rate*) under NAB's current special offer Tailored home loan deal.

However, ANZ doesn't require borrowers to access the rate through a home loan package and offers it to those with up to 80% LVR, while NAB's rate is only open to those with LVRs up to 70%.

See below for the big banks' lowest fixed home loan rates for owner occupiers making P&I repayments:

Bank Product Rate Comparison rate*
CommBank 3 years fixed Wealth Package loan 5.74% p.a. 7.59% p.a.
Westpac ≤70% LVR 2 years fixed package loan (new lending only) 5.59% p.a. 6.40% p.a.
NAB ≤70% LVR Tailored home loan special offer 3 years fixed (new lending only) 5.39% p.a. 6.30% p.a.

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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
Filters
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 TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
5.79% p.a.
5.83% p.a.
$2,931
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
5.89% p.a.
6.14% p.a.
$2,962
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
  • Apply online in as little as 15 minutes
  • Dedicated home loan experts are available to help
Disclosure
5.89% p.a.
5.93% p.a.
$2,962
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Offset
  • 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
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

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