Lenders continue fixed rate cuts ahead of potential RBA easing
ANZ has lowered its fixed mortgage rates for both owner-occupiers and investors, with the changes taking effect just under two weeks before the Reserve Bank of Australia’s next monetary policy announcement.
The bank’s fixed rates were reduced by as much as 0.40 percentage points for owner-occupiers and up to 0.45 percentage points for investors. The bank’s lowest fixed rate is now 5.39% for a two-year term.
The revised rates position ANZ as the most competitive among the big four banks for one- and two-year fixed home loans for owner-occupiers repaying principal and interest. Meanwhile, NAB continues to lead in three-, four- and five-year fixed terms following its own adjustments in April.
Several other lenders have also moved to lower rates in recent weeks. BOQ and Police Bank have each introduced sub-5% fixed offers, launching rates at 4.99% on May 2 and 7 respectively — currently the lowest non-green loan rates on the market. NAB and Macquarie Bank have also trimmed their fixed rates, with changes recorded on April 11 and 24.
“The fixed rate mortgage market is finally heating up with cuts in the last month from lenders big and small including NAB, Macquarie Bank and now ANZ,” said Canstar data insights director Sally Tindall (pictured below). “Today’s cuts from ANZ mean it now has the lowest one- and two-year fixed rates out of the big four banks, with rates starting from 5.39%.
“The bank has one eye on the possibility of cash rate cuts, potentially as soon as May 20, and another on locking new customers in, using a relatively competitive fixed rate as the hook.
While a rate of 5.39% isn’t likely to turn many heads, with variable borrowers across the country hanging out for further cash rate cuts, a fixed rate of 4.99% might grab attention.
“A mortgage rate starting with a ‘four’ is a crucial threshold psychologically that could prompt some borrowers to give up their seat on the variable rate rollercoaster. However, by doing so they would be giving up the potential for further cuts in the fixed rate term.”
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