Big bank hikes two-year fixed rate

By Gerv Tacadena

ANZ also made some changes to its cash-back offers

ANZ has made changes to its home loan offers in a bid to cool demand from borrowers.

According to a report in The Australian Financial Review, ANZ increased the interest rate of its two-year fixed mortgage by 10 basis points (bps) to 2.44%.

The interest rate for ANZ's Breakfree annual package was also raised by 10 bps to 2.29%.

Furthermore, borrowers who take out loans of $250,000 or more will be offered a reduced cash-back of $3,000.  This will apply to new loans starting next month.

No changes, however, were made to the cash-back offer for loans worth $150,000 to $250,000.

According to Your Mortgage's Home Loan Tool, the lowest rate for a two-year fixed mortgage is 2.09%., offered by ING. To know more about this month's most competitive rates, click here.

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