ANZ, AMP, Bank Australia shift home loan rates ahead of RBA decision

The Reserve Bank of Australia (RBA) monetary policy board will meet on Monday to make its next cash rate move, with its decision to be announced on Tuesday afternoon. 

While the July meeting was once widely expected to result in a hold, opinions have been skewed by the recent data flow.

A downside inflation surprise and sluggish retail sales figures led the three big four banks previously tipping a hold to pivot, with the entire quartet now forecasting a 25 basis point cut.

That would mean Australian borrowers could realise back-to-back rate cuts, leaving the cash rate at 3.60% – down from its current 3.85%.

Amid this backdrop, three banking brands adjusted home loan rates, with ANZ lopping as much as 50 basis points from its fixed rate lineup.

ANZ cuts fixed home loan rates by up to 50bp

The smallest of the big banks, ANZ, dropped the lowest fixed rates out of the four majors this week, with rates starting from 5.19% p.a.

That rate is available for owner-occupiers fixing their rate for two years, making principal and interest repayments, with loan-to-value ratios (LVRs) of 80% or less (6.44% p.a. comparison rate*).

Meanwhile, the biggest haircuts were realised by investors making interest only repayments, with one-year fixed rates for those with LVRs of 80% or more reduced by 50 basis points to 6.04% p.a. (7.38% p.a. comparison rate*).

Read more: ANZ slashes home loan rates to as low as 5.19%

The bank's new rates were published just hours before its economics team announced it had adjusted its forecast for the RBA's July meeting – making it the last of the majors to tip a rate cut.

AMP hikes variable mortgage rates

AMP joined in with ANZ in cutting fixed rates while simultaneously lifting variable rates.

It dropped fixed rates to as low as 5.19% p.a. – available on its Professional Package home loan to owner-occupiers with LVRs of 80% or less fixing their rate for two years and making principal and interest repayments (6.53% p.a. comparison rate*).

Meanwhile, AMP also unveiled new variable rates on its Basic Home Loan product:

Borrower	LVR	Change	New rate	Comp rate*
Owner-occupier	≤60%	+25bp	6.99%	7.04%
	60–80%	+25bp	7.09%	7.14%
	80–90%	+25bp	7.39%	7.44%
Investor	≤60%	+25bp	7.24%	7.29%
	60–80%	+25bp	7.29%	7.34%
	80–90%	+25bp	7.77%	7.82%

Bank Australia unveils 5.04% p.a. green investment rate

Finally, environmentally-conscious Bank Australia dropped rates across many products this week.

The stand out change was applied to its Clean Energy home loan for property investors, available to those building a new, sustainable home.

Eligible borrowers turning to the loan and fixing their rate for three years may now be able to access a 5.04% p.a. interest rate (5.74% p.a. comparison rate*).

To qualify, properties must:

• Be all-electric and have a minimum NatHERS rating of 7.5 stars
• Be valued under $2.5 million
• Be built within the last 18 months
• Include solar panels (for freestanding homes)

The product's notably low rate is thanks in part to support from the Clean Energy Finance Corporation, which is backed by the Federal Government.

Owner-occupiers turning to the product can realise a three-year fixed rate of 4.74% p.a. (5.58% p.a. comparison rate*).

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_{Image by Kate Darmody on Unsplash}