ANZ joins big four competitors in hiking long-term fixed home loan rates

ELLIE MCLACHLAN
ANZ is following its major bank competitors in increasing interest rates on some longer-term fixed home loans, but has also cut its two-year fixed rates for owner-occupiers and investors.
ANZ fixed rate changes June 2021
ANZ has changed some of its fixed rate home loan prices in June. Image: Vitalii Tairov.

ANZ has made a number of changes to its home loan interest rates today. The changes include the following adjustments to its Breakfree package rates:

New ANZ owner-occupier rates, deposit of 20% or more, paying principal and interest

  • Two-year fixed package loan: cut to 1.94% (3.24% comparison rate)
  • Four-year fixed package loan: increased to 2.49% (3.26% comparison rate)
  • Five-year fixed package loan: increased to 2.69% (3.30% comparison rate)

New ANZ investor rates, deposit of 20% or more, paying principal and interest

  • Two-year fixed package loan: cut to 2.29% (3.78% comparison rate)

The bank also changed its standard interest rates on non-package home loans, and on loans where customers have smaller deposits, the full details of which are available on ANZ’s website.

How big were the changes to ANZ’s fixed rates?

The major bank hiked its four-year fixed rates for owner-occupiers paying principal and interest by 0.25 percentage points today, and its five-year fixed rates for these same borrowers by 0.45 percentage points.

Canstar analysis shows ANZ is the last of the big four banks to jump on the trend of increasing longer-term fixed home loan rates this year, with Commonwealth Bank and Westpac having done so twice already, and National Australia Bank once in May.

Big banks fixed home loan increases 2021

ANZ’s changes also see its two-year fixed home loans for owner-occupiers paying principal and interest go down by 0.10 percentage points, while investment two-year fixed rates for interest only and principal and interest repayments are down by 0.15 percentage points.

The move to lower its two-year fixed rates for owner-occupiers is a change from the trend Canstar has noticed recently, where some banks have started increasing shorter-term fixed rate home loans. Westpac did so earlier this week.

While this cut brought ANZ’s two-year fixed package rate of 1.94% (3.24% comparison rate) in line with Commonwealth Bank’s rate for the same term (3.93% comparison rate) where borrowers have a deposit of at least 20% – in other words, a maximum loan-to-value ratio (LVR) of 80%. NAB and Westpac still offer the cheapest two-year rates out of the big four at 1.89% (3.97% and 3.38% comparison rates, respectively).

There are even cheaper rates than that though, many of which can be found at lenders outside the major banks. In fact, there are currently 181 home loan interest rates below 2% on Canstar’s database.

Lowest home loan rates on our database by term

  • One-year fixed: 1.67% (comparison rate 3.84%) on bcu’s Residential Fixed P&I 1 yr loan, maximum LVR of 95%
  • Two-year fixed: 1.78% (comparison rate 3.66%) on bcu’s Residential Fixed P&I 2 yrs loan, maximum LVR of 95%
  • Three-year fixed: 1.79% (comparison rate 3.33%) on Credit Union SA’s Fixed Home Loan Package P&I 3 yrs Special Offer loan, maximum LVR of 80%
  • Four-year fixed: 2.04% (2.07% comparison rate) on Hume Bank’s myBlue P&I Fixed 4 yrs loan, maximum LVR of 60%
  • Five-year fixed: 2.24% (2.33% comparison rate) UBank’s UHomeLoan Fixed P&I 5 yrs loan, maximum LVR of 80%
  • Variable: 1.77% (1.86% comparison rate) Reduce Home Loans’ Super Saver Variable loan, maximum LVR of 60%

Source: www.canstar.com.au – 11/06/2021. Based on owner-occupier loans on Canstar’s database, available for a loan amount of $500,000, at any LVR and with principal & interest repayments; excludes first home buyer-only loans. Comparison rate calculated based on a loan amount of $150,000 and loan term of 25 years. Read the Comparison Rate Warning. Top rate in each term selected based on the product with the lowest rate, followed by lowest comparison rate.


Compare Home Loans with Canstar

If you’re currently considering a home loan, the comparison table below displays some of the 1-year fixed rate home loans on our database with links to lenders’ websites that are available for homeowners looking to refinance. This table is sorted by Star Rating (highest to lowest), followed by comparison rate (lowest to highest). Products shown are principal and interest home loans available for a loan amount of $350K in NSW with an LVR of 80% of the property value and that offer an offset account. Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.


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This article was reviewed by our Sub Editor Tom Letts before it was updated, as part of our fact-checking process.