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ANZ cuts fixed rates ahead of next week's RBA meeting
Thirteen low-cost lenders now offer a fixed rate under 5%
02 July 2025
Thirteen low-cost lenders now offer a fixed rate under 5%
ANZ has today cut its 1- to 5- year fixed rates by up to 0.35 percentage points ahead of next week’s RBA Monetary Policy Board meeting on 7 and 8 July.
This takes the bank’s lowest advertised rate to 5.19% fixed for 2-years for owner-occupiers paying principal and interest.
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| ANZ’s changes to fixed rates | ||
|---|---|---|
| Term | New rate from | Change % pts |
| 1-year | 5.29% | -0.20 |
| 2-year | 5.19% | -0.20 |
| 3-year | 5.34% | -0.35 |
| 4-year | 5.74% | -0.10 |
| 5-year | 5.74% | -0.10 |
Source: Canstar. Notes: based on owner occupied loans with principal and interest repayments. LVR requirements apply..
Today’s changes mean ANZ now has the lowest fixed rates in each of the 1- to 5-year fixed rate terms out of the majors.
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| Big four banks’ lowest fixed rates | ||||
|---|---|---|---|---|
| Term | CBA | Westpac | NAB | ANZ |
| 1-year | 5.69% | 5.69% | 5.54% | 5.29% |
| 2-year | 5.74% | 5.59% | 5.44% | 5.19% |
| 3-year | 5.49% | 5.89% | 5.39% | 5.34% |
| 4-year | 5.89% | 5.89% | 5.79% | 5.74% |
| 5-year | 6.29% | 5.89% | 5.79% | 5.74% |
Source: Canstar. Notes: based on owner occupied loans with principal and interest repayments. LVR requirements apply.
Fixed rates continue to fall as market expectations of further cash rate cuts ramp up
A total of 13 lenders now offer at least one fixed rate under 5% including Bank of Queensland (BOQ), Greater Bank, Australian Mutual and Community First. Contact us for full list.
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| Lowest fixed rates on Canstar | ||
|---|---|---|
| Term | Lender | Lowest rate from |
| 1-year | Pacific Mortgage Group | 4.99% |
| 2-year | Easy Street | 4.95% |
| 3-year | BankVic | 4.98% |
| 4-year | BOQ, People’s Choice | 5.29% |
| 5-year | BOQ, People’s Choice, Heritage Bank | 5.29% |
Source: Canstar. Rates are for owner-occupiers paying principal and interest. LVR requirements may apply. Excludes eco loans.
Latest cut puts ANZ ahead in the low-rate race
Canstar.com.au data insights director, Sally Tindall says, “This move by ANZ consolidates its lead as the lowest-cost fixed rate lender out of the majors.”
“The bank is factoring in the possibility of further cash rate cuts, which could be coming down the line as soon as next week.
“ANZ could also be looking to shore up its loan book by locking in more customers on fixed rate deals. The bank’s most recent half year results show that just 3 per cent of its residential mortgage book is on a fixed rate contract. This means the remaining 97 per cent on variable rates are free to move at any time without major penalties.
“While ANZ’s fixed rates are streaks ahead of the other big banks, particularly on shorter terms, they’re still a far cry from the lowest fixed rates in town, with a total of 13 different lenders now offering at least one fixed rate under 5 per cent.
“If you’re looking to lock in your rate, don’t go aiming for one that starts with a 5 or a 6. You should be looking in the 4’s.”
Owner occupied
20% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
Cover image source: Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
