ANZ slashes rates to new low as banks wage home loan war
21 Feb 2020
ANZ is the latest bank to launch a rate cut missile, as the home loan rate war heats up. One finance expert says it’s the latest volley in a rate war raging because banks are “jockeying for market share” in a “supercharged” market.
Effective today, ANZ’s cuts to its fixed-rate loans make one of its package deals register as the lowest rate on Canstar’s database of more than 4,000 home loan products from more than 100 lenders.
The two-year fixed owner-occupier home loan for borrowers paying principal and interest now has a package rate of just 2.68% (comparison rate 4.40%).
The details of the big four bank’s other cuts are as follows:
- Owner-occupier, principal and interest fixed rate loans: Cut by between 0.10 and 0.45 percentage points
- Owner-occupier, interest-only fixed rate loans: Cut by between 0.01 and 0.26 percentage points
- Investor, principal and interest fixed rate loans: Cut by between 0.21 and 0.66 percentage points
- Investor, interest only fixed rate loans: Cut by between 0.31 and 0.86 percentage points
Canstar’s finance expert Steve Mickenbecker said ANZ’s move was “hot on the heels” of cuts made by Commonwealth Bank and Westpac last week.
“The market is supercharged right now as banks jockey to win back market share,” Mr Mickenbecker said.
“ANZ’s market share has lagged well behind in the post-GFC period and the lender wants to reverse that trend.”
He said investors seemed to be the main focus of these cuts.
“Investors are the winners, with the two-year package rate for principal and interest at 2.88% (4.91% comparison rate), only 0.20 percentage points ahead of the owner-occupier rate,” he said.
“The biggest cuts are for investors borrowing with interest only repayments, up to a huge 0.86 percentage points for four- and five-year terms.
“The investment cuts we’re seeing are slashing the higher margin banks previously applied to investment loans, both principal and interest and interest only, reversing the trend we saw when APRA clamped down on growth in these categories.
“Investment lending is now a competitive playground for the big banks.”
What are ANZ’s new home loan rates?
Owner-occupier changes:
| ANZ Fixed Home Loan Principal & Interest | ||||
| Term | Old Rate % p.a. | Change % p.a. | New Rate % p.a. | New Comparison Rate % p.a.¹ |
| Package rates2 | ||||
| 1 Year | 3.28% | -0.30% | 2.98% | 4.57% |
| 2 Year | 2.98% | -0.30% | 2.68% | 4.40% |
| 3 Year | 2.98% | -0.10% | 2.88% | 4.32% |
| 4 Year | 3.53% | -0.45% | 3.08% | 4.29% |
| 5 Year | 3.53% | -0.45% | 3.08% | 4.20% |
| Non-package rates | ||||
| 1 Year | 3.43% | -0.30% | 3.13% | 4.68% |
| 2 Year | 3.13% | -0.30% | 2.83% | 4.49% |
| 3 Year | 3.13% | -0.10% | 3.03% | 4.39% |
| 4 Year | 3.68% | -0.45% | 3.23% | 4.33% |
| 5 Year | 3.68% | -0.45% | 3.23% | 4.23% |
| Source: ANZ, effective 21/02/2020.
1 Comparison rate calculated by ANZ on a loan amount of $150,000 over a term of 25 years based on monthly repayments. Read the Comparison Rate Warning. For fixed-rate, interest-only loans, the comparison rates are calculated based on an initial interest-only period equal in term to the fixed period. 2 Package fees, eligibility criteria and other terms and conditions may apply. Contact ANZ for details. |
||||
| ANZ Fixed Home Loan Interest Only | ||||
| Term | Old Rate % p.a. | Change % p.a. | New Rate % p.a. | New Comparison Rate % p.a.¹ |
| Package rates2 | ||||
| 1 Year | 3.89% | -0.11% | 3.78% | 4.63% |
| 2 Year | 3.69% | -0.21% | 3.48% | 4.53% |
| 3 Year | 3.69% | -0.01% | 3.68% | 4.51% |
| 4 Year | 4.14% | -0.26% | 3.88% | 4.52% |
| 5 Year | 4.14% | -0.26% | 3.88% | 4.49% |
| Non-package rates | ||||
| 1 Year | 4.04% | -0.11% | 3.93% | 4.76% |
| 2 Year | 3.84% | -0.21% | 3.63% | 4.64% |
| 3 Year | 3.84% | -0.01% | 3.83% | 4.60% |
| 4 Year | 4.29% | -0.26% | 4.03% | 4.60% |
| 5 Year | 4.29% | -0.26% | 4.03% | 4.56% |
| Source: ANZ, effective 21/02/2020.
1 Comparison rate calculated by ANZ on a loan amount of $150,000 over a term of 25 years based on monthly repayments. Read the Comparison Rate Warning. For fixed-rate, interest-only loans, the comparison rates are calculated based on an initial interest-only period equal in term to the fixed period. 2 Package fees, eligibility criteria and other terms and conditions may apply. Contact ANZ for details. |
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Investment changes:
| ANZ Fixed Rate Residential Investment Property Loan Principal & Interest | ||||
| Term | Old Rate % p.a. | Change % p.a. | New Rate % p.a. | New Comparison Rate % p.a.¹ |
| Package rates2 | ||||
| 1 Year | 3.69% | -0.51% | 3.18% | 5.11% |
| 2 Year | 3.29% | -0.41% | 2.88% | 4.91% |
| 3 Year | 3.29% | -0.21% | 3.08% | 4.80% |
| 4 Year | 3.94% | -0.66% | 3.28% | 4.73% |
| 5 Year | 3.94% | -0.66% | 3.28% | 4.62% |
| Non-package rates | ||||
| 1 Year | 3.84% | -0.51% | 3.33% | 5.24% |
| 2 Year | 3.44% | -0.41% | 3.03% | 5.01% |
| 3 Year | 3.44% | -0.21% | 3.23% | 4.88% |
| 4 Year | 4.09% | -0.66% | 3.43% | 4.79% |
| 5 Year | 4.09% | -0.66% | 3.43% | 4.66% |
| Source: ANZ, effective 21/02/2020.
1 Comparison rate calculated by ANZ on a loan amount of $150,000 over a term of 25 years based on monthly repayments. Read the Comparison Rate Warning. For fixed-rate, interest-only loans, the comparison rates are calculated based on an initial interest-only period equal in term to the fixed period. 2 Package fees, eligibility criteria and other terms and conditions may apply. Contact ANZ for details. |
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| ANZ Fixed Rate Residential Investment Property Loan
Interest Only |
||||
| Term | Old Rate % p.a. | Change % p.a. | New Rate % p.a. | New Comparison Rate % p.a.¹ |
| Package rates2 | ||||
| 1 Year | 3.99% | -0.71% | 3.28% | 5.12% |
| 2 Year | 3.49% | -0.51% | 2.98% | 4.92% |
| 3 Year | 3.49% | -0.31% | 3.18% | 4.81% |
| 4 Year | 4.24% | -0.86% | 3.38% | 4.75% |
| 5 Year | 4.24% | -0.86% | 3.38% | 4.65% |
| Non-package rates | ||||
| 1 Year | 4.14% | -0.71% | 3.43% | 5.25% |
| 2 Year | 3.64% | -0.51% | 3.13% | 5.03% |
| 3 Year | 3.64% | -0.31% | 3.33% | 4.92% |
| 4 Year | 4.39% | -0.86% | 3.53% | 4.84% |
| 5 Year | 4.39% | -0.86% | 3.53% | 4.72% |
| Source: ANZ, effective 21/02/2020.
1 Comparison rate calculated by ANZ on a loan amount of $150,000 over a term of 25 years based on monthly repayments. Read the Comparison Rate Warning. For fixed-rate, interest-only loans, the comparison rates are calculated based on an initial interest-only period equal in term to the fixed period. 2 Package fees, eligibility criteria and other terms and conditions may apply. Contact ANZ for details. |
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