That sees ANZ advertising some of the lowest rate fixed products out there, though it's still bested by the likes of Macquarie Bank and Bank of Queensland (BoQ).
This marks the third time ANZ has cut home loan rates in 2025 – following reductions after the RBA’s February decision and again in March – and the second time it's taken the top off its one year fixed rates.
The lowest rate offered to fixing their rate for one year with the bank now stands at 5.49% p.a. (6.84% p.a. comparison rate*).
Meanwhile its lowest advertised rate is on two-year fixed periods, at 5.39% p.a. (6.67% p.a. comparison rate*).
ANZ's latest fixed interest rate cuts for owner-occupiers making principal and interest repayments include:
|
Fixed period |
LVR |
Change |
New rate |
Comp rate* |
|---|---|---|---|---|
|
One year |
<80% |
-40bp |
5.49% |
6.84% |
|
>80% |
-40bp |
5.94% |
7.06% |
|
|
Two years |
<80% |
-35bp |
5.39% |
6.67% |
|
>80% |
-35bp |
5.84% |
6.92% |
|
|
Three years |
<80% |
-5bp |
5.69% |
6.62% |
|
>80% |
-5bp |
6.14% |
6.89% |
|
|
Four years |
<80% |
-5bp |
5.84% |
6.57% |
|
>80% |
-5bp |
6.29% |
6.86% |
|
|
Five years |
<80% |
-15bp |
5.84% |
6.49% |
|
>80% |
-15bp |
6.29% |
6.79% |
ANZ's biggest cut for owner-occupiers was made on its one-year fixed rate option.
The 40 basis point cut has the potential to reduce monthly repayments for a homeowner with a $500,000 mortgage from $2,962 to $2,836 – a saving of $1,500 in that year.
See how a rate cut could impact your repayments: Mortgage Repayment Calculator
How do ANZ's new fixed home loan rates compare?
ANZ's latest rate cut sees its fixed rates either on par or below those offered by its big four bank peers.
The lowest fixed rate offered by any other member of the quartet is 5.39% p.a. (6.3-6.44% comparison rate*), offered by NAB to owner-occupiers with loan-to-ratio ratios (LVRs) of 80% or less fixing their rate for three years.
Meanwhile, Westpac's lowest advertised fixed rate is 5.59% p.a. (6.44% p.a. comparison rate*) and CommBank's is 5.89% p.a. (7.89% p.a. comparison rate*), both for three-year fixed terms.
Beyond the big four, both BoQ and Police Bank have recently slashed fixed home loan rates to below 4.99% p.a. for eligible owner-occupiers fixing their rate for three years.
And, in late April, Macquarie dropped two- and three-year fixed rates to as low as 5.19% p.a. and one-year fixed rates to 5.29% p.a.
ANZ predicts RBA will cut cash rate by 25bp in May
ANZ is one of the multitude of banks and commentators expecting the Reserve Bank of Australia (RBA) to cut the cash rate by 25 basis points when it meets in May.
The central bank's monetary policy board will come together on 19 May and announce its decision the following day.
ANZ economists expect the cut to be supported by weak retail sales and household consumption data for the March quarter, while wage growth is forecast to come in slightly under RBA forecasts.
"The election result does not change our economic forecasts," the ANZ economics team said on Friday.
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