The smallest of Australia's big four banks now advertises the most competitive fixed rate of the quartet - at just 5.74% p.a. for eligible owner-occupiers. 

Previously, the lowest advertised rate among the majors was 5.89% p.a., offered by both NAB (on three-year fixed rate periods) and Westpac (for select borrowers fixing for two or more years).

ANZ officially joined the apparently ongoing home loan rate cutting spree on 11 October, months after 2024's first downwards move from a major bank occurred in July.

It's latest moves see a home loan borrower with a deposit of 20% fixing their rate for a three-year period now able to realise an interest rate 5.74% p.a. – down from 6.59% p.a. at the start of October.

Such a difference could result in notable savings for a homeowner with a $500,000, 30-year mortgage, dropping their monthly repayments from $3,190 to $2,915 – a $275 difference.

Learn how a rate cut could impact your finances: Mortgage Repayment Calculator

However, borrowers with deposits or equity worth less than 20% of their property's value might find they face higher rates in the wake of ANZ's adjustments.

Monday's rate move came amid news ANZ's bottom line will take a $196 million post-tax hit in the second half of its fiscal year due to accounting related adjustments.

The adjustments are largely related to the consolidation of Suncorp Bank, which it acquired earlier this year.

Fixed home loan rate changes for owner-occupiers

If you're hunting for a new owner-occupied home loan, here are the latest rate changes from ANZ for borrowers making principal and interest repayments:

Fixed Period LVR Change New Rate Comparison Rate*
One year ≤80% -25bp 6.14% 7.13%
80-90% +15bp 6.59% 7.35%
Two years ≤80% -25bp 5.74% 6.94%
80-90% +15bp 6.19% 7.19%
Three years ≤80% -25bp 5.74% 6.81%
80-90% +15bp 6.19% 7.08%
Four years ≤80% -25bp 5.89% 6.75%
80-90% +15bp 6.34% 7.03%
Five years ≤80% -25bp 5.99% 6.69%
80-90% +15bp 6.44% 7.00%
Seven years ≤80% -25bp 7.24% 7.24%
80-90% +15bp 7.69% 7.59%
Ten years ≤80% -25bp 7.24% 7.24%
80-90% +15bp 7.69% 7.63%

Fixed Home Loan Rate Changes for Property Investors

Meanwhile, property investors might find their attention piqued by these new fixed rates:

Fixed Period LVR Interest Type Change New Rate Comparison Rate*
One year ≤80% P&I -25bp 6.24% 7.67%
IO -25bp 6.34% 7.68%
80-90% P&I +15bp 6.69% 7.89%
IO +15bp 6.79% 7.91%
Two years ≤80% P&I -25bp 5.94% 7.45%
IO -25bp 6.04% 7.48%
80-90% P&I +15bp 6.39% 7.70%
IO +15bp 6.49% 7.72%
Three years ≤80% P&I -25bp 5.94% 7.28%
IO -25bp 6.04% 7.32%
80-90% P&I +15bp 6.39% 7.55%
IO +15bp 6.49% 7.59%
Four years ≤80% P&I -25bp 5.99% 7.15%
IO -25bp 6.09% 7.21%
80-90% P&I +15bp 6.44% 7.44%
IO +15bp 6.54% 7.49%
Five years ≤80% P&I -25bp 6.09% 7.06%
IO -25bp 6.19% 7.13%
80-90% P&I +15bp 6.54% 7.37%
IO +15bp 6.64% 7.43%
Seven years ≤80% P&I -25bp 7.24% 7.49%
IO -25bp 7.24% 7.50%
80-90% P&I +15bp 7.69% 7.84%
IO +15bp 7.69% 7.84%
Ten years ≤80% P&I -25bp 7.24% 7.40%
IO -25bp 7.24% 7.42%
80-90% P&I +15bp 7.69% 7.78%
IO +15bp 7.69% 7.79%

What's going on with the RBA?

Punters might wonder if the latest home loan rate drops from the big four bank are a sign of an upcoming Reserve Bank of Australia (RBA) cash rate cut.

ANZ, along with NAB and Westpac, is forecasting the RBA board to make its first downward movement in February 2024.

The cash rate influences banks' operating costs and when it's high lenders tend to increase interest rates on loan products to recoup their higher costs.

Conversely, a cash rate cut could trigger a downward trend in home loan rates.

Interest rates play a crucial role in managing inflation, which the RBA wants to keep within its 2% to 3% target range – underlying inflation lifted 3.8% over the 12 months to the June quarter.

The Australian Bureau of Statistics (ABS) is set to release inflation figures for the September quarter on Wednesday and the outcome could significantly impact the RBA board's decision-making.


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Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 STAR CUSTOMER RATINGS
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
6.14% p.a.
6.16% p.a.
$3,043
Principal & Interest
Variable
$0
$350
60%
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 .

Important Information and Comparison Rate Warning

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