With eyes turning to another RBA cash rate rise next week, ANZ has followed the lead of ING and ME Bank cutting variable home loan rates by up to 50 basis points across its Simplicity Plus product range for new owner-occupiers and investors. 

The decision to decrease variable rates comes as ANZ economists forecast the RBA cash rate to hit above 3% by the end of the year.

If a mortgage rate went from 3.00% p.a. to 5.00% p.a. on a 30-year term it would add $708 to the monthly repayment on the average home loan size.

The decrease across ANZ's Simplicity Plus product offerings applies to new mortgages with a loan-to-value ratio (LVR) of either 70 or 80%. 

Highlights of this decrease include:

  • Simplicity Plus P&I <70% Special Offer: 10 basis point decrease to 3.19% p.a. (3.20% p.a. comparison rate*)
  • Simplicity Plus P&I 70-80% Special Offer: 25 basis point decrease to 3.29% p.a. (3.30% p.a. comparison rate*)
  • Investment Simplicity Plus P&I <70% Special Offer: 40 basis point decrease to 3.54% p.a. (3.55% p.a. comparison rate*)
  • Investment Simplicity Plus IO <70% Special Offer: 50 basis point decrease to 3.84% p.a. (3.66% p.a. comparison rate*)

NAB increases fixed home loans by up to 0.65% p.a.

On Friday, NAB increased fixed home loan rates by up to 65 basis points across both Tailored and Choice Package products for owner occupiers and investors. 

Key changes across NAB's home loan portfolio for owner occupiers included:

  • Tailored Fixed P&I 3 Years 95%: 55 basis point increase to 6.44% p.a. (6.09% p.a. comparison rate*)
  • Tailored Fixed IO 3 Years 95%: 60 basis point increase to 6.79% p.a. (6.25% p.a. comparison rate*)
  • Choice Package Tailored Fixed - P&I 3 Years 150k+: 55 basis point increase to 6.34% p.a. (5.88% p.a. comparison rate*)
  • Choice Package Tailored Fixed - IO 3 Years 150k+: 60 basis point increase to 6.69% p.a. (6.01% p.a. comparison rate*)

For investors, key changes included:

  • Investment Tailored Fixed P&I 3 Years 90%: 55 basis point increase to 6.64% p.a. (6.58% p.a. comparison rate*)
  • Investment Tailored Fixed IO 3 Years 90%: 65 basis point increase to 6.74% p.a. (6.64% p.a. comparison rate*)
  • Choice Package Investment Tailored Fixed - P&I 3 yrs 150k+: 55 basis point increase to 6.54% p.a. (6.36% p.a. comparison rate*)
  • Choice Package Investment Tailored Fixed - IO 3 yrs 150k+: 65 basis point increase to 6.64% p.a. (6.43% p.a. comparison rate*)

NAB's increase comes following a recent speech from Reserve Bank Deputy Governor Michele Bullock, revealing the RBA has been considering how susceptible recent fixed-rate borrowers will be to higher rates when fixed terms expire. 

"Unlike borrowers who hold variable-rate loans, we have very little visibility of how much saving those with fixed-rate loans have been doing in recent years," Ms Bullock said.  

"In an environment of increasing interest rates, there is a risk that households with high debt-to-income ratios (DTIs) will find it more difficult to service their debt."


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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 LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • 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.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
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.

Image by Max Vakhtbovych via Pexels





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