ANZ slashes home loan rates to as low as 5.19%

ANZ has dropped rates across its fixed rate home loan line up to as low as 5.19% p.a. (6.44% p.a. comparison rate*) for certain borrowers locking in their rate for two years. 

It comes just days before the next Reserve Bank of Australia (RBA) board meeting, expectations of the outcome of which remain up in the air.

Banks lower their fixed rates when they expect the cash rate to fall in the future.

Interestingly, ANZ is the only big four bank not anticipating a cash rate cut on Tuesday, 8 July.

ANZ's new mortgage rates: What borrowers should know

ANZ's new lowest home loan rate is available to owner-occupiers with loan-to-value ratios (LVRs) of 80% or less – meaning those with a deposit or equity worth at least 20% of their property's value.

It's advertised on two-year fixed rate periods, with fixed rate periods of one- or three-years offering slightly higher rates and longer fixed periods attracting notably higher rates.

ANZ drops fixed rates for owner-occupiers

Here are the latest changes revealed by ANZ on Wednesday for owner-occupiers making principal and interest repayments:

Fixed period	LVR	Change	New rate	Comp rate*
One year	≤80%	-20bp	5.29%	6.59%
	80-90%	-20bp	5.74%	6.82%
Two years	≤80%	-20bp	5.19%	6.44%
	80-90%	-20bp	5.64%	6.68%
Three years	≤80%	-35bp	5.34%	6.35%
	80-90%	-35bp	5.79%	6.61%
Four years	≤80%	-10bp	5.74%	6.38%
	80-90%	-10bp	6.19%	6.61%
Five years	≤80%	-10bp	5.74%	6.31%
	80-90%	-10bp	6.19%	6.61%

ANZ is also one of few lenders advertising fixed rate periods of seven and 10 years, though rates on these products were not adjusted on Wednesday.

ANZ cuts fixed rates for property investors

Here are the latest changes revealed by ANZ on Wednesday for property investors making principal and interest repayments:

Fixed period	LVR	Change	New rate	Comp rate*
One year	≤80%	-15bp	5.49%	7.15%
	80-90%	-15bp	5.94%	7.37%
Two years	≤80%	-15bp	5.39%	6.95%
	80-90%	-15bp	5.84%	7.20%
Three years	≤80%	-10bp	5.54%	6.82%
	80-90%	-10bp	5.99%	7.09%
Four years	≤80%	-5bp	5.94%	6.83%
	80-90%	-5bp	6.39%	7.11%
Five years	≤80%	-5bp	5.94%	6.72%
	80-90%	-5bp	6.39%	7.03%

Investors fixing their rate for longer than five years or making interest only repayments will likely realise higher rates than those listed above.

How do ANZ's new fixed rates stack up?

ANZ's newly trimmed fixed rates are now the lowest available at any of the big four banks, besting NAB's most competitive fixed rate by 10 basis points.

Here's how ANZ's new 5.29% p.a. fixed rate compares to the lowest offered at each of its big bank peers:

Bank	Lowest advertised fixed rate	Available for terms of
CommBank	5.49% p.a.	Three years
Westpac	5.89% p.a.	Two years
NAB	5.39% p.a.	Three years
ANZ	5.29% p.a.	Two years

Looking beyond the big four, fellow major Macquarie Bank currently advertises fixed rates as low as 5.19% p.a. for periods of two or three years (comparison rates* 5.81% p.a. and 5.77% p.a. respectively) for owner-occupiers making principal and interest repayments.

Meanwhile, smaller players such as Regional Australia Bank, BankVic, Greater Bank, and GMCU are advertising fixed rates under 5% p.a. to select borrowers.

ANZ economists tip RBA to hold cash rate in July

The latest rate cut from ANZ might leave some questioning whether the bank's product and economist teams are in sync.

Home loan lenders often lower fixed rates when in expectation of cash rate cuts, but ANZ economists are still holding out for a July RBA hold.

The RBA monetary policy board will meet on 7 July, with a cash rate decision to be announced on Tuesday, 8 July.

Until recently, the meeting was largely expected to be a non-event.

However, that changed on the release of inflation data showing a surprise drop in consumer price growth, bringing it below the middle of the RBA's target band in May.

Both CommBank and Westpac adjusted their cash rate forecasts in the wake of the data, while NAB was already predicting a July cut.

ANZ, on the other hand, is standing fast, continuing to predict just two more rate cuts – one in August and another in February – with the cash rate bottoming out at 3.35%.

"We see such a course as broadly consistent with our read on the domestic economy and reflecting a degree of caution," ANZ head of Australian economics Adam Boyton and senior economist Adelaide Timbrell said in late July.

"That said, we would not rule out a more rapid pace of easing to 3.35%, with 25 basis point cuts in July and August 2025."

The experts noted, if a July cut were to occur, they would consider it "insurance" against slowing economic growth but warned that any more than two cuts could open the door to near-term hikes.

"If the RBA cuts further than we expect, in the absence of a sharp deterioration in the global economy that spilt over domestically, household income dynamics and our expected activity trend would suggest the risk of policy tightening in late 2026 or early 2027," they said.

---

Advertisement

Important Information and Comparison Rate Warning

_{Image by Kgbo on Wikimedia Commons}