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Big bank home loan war as ANZ slashes fixed rates to 2.68%

Australia’s fourth largest lender, ANZ, has slashed its fixed rate home loans by up to 0.86 per cent.

The lowest advertised rate from ANZ is now 2.68 per cent on its two-year fixed rate package loan for owner-occupiers paying principal and interest. This is the second equal lowest two-year fixed rate in the RateCity.com.au database.

ANZ has cut their two-year investor rate to 2.88 per cent for people paying principal and interest. This is now the lowest two-year fixed rate for investors on RateCity.com.au.

RateCity research shows over 30 lenders have cut fixed home loan rates this year, including Australia’s largest bank CBA, which made cuts across the board last Friday.

Big four bank fixed rates – how they compare

Owner occupier, principal and interest

CBAWestpacNABANZ
1 year2.99%3.19%3.19%2.98%
2 year2.99%2.88%2.88%2.68%
3 year2.99%2.88%2.98%2.88%
4 year3.19%3.39%3.19%3.08%
5 year3.19%3.39%3.19%3.08%

Notes: The above rates are the banks’ lowest fixed rates in each category. Some LVR restrictions apply.

ANZ fixed rate changes

Owner occupier fixed package rates, principal and interest

Old rateNew rateChange
1 year3.28%2.98%-0.30%
2 year2.98%2.68%-0.30%
3 year2.98%2.88%-0.10%
4 year3.53%3.08%-0.45%
5 year3.53%3.08%-0.45%

Owner occupier fixed package rates, interest only

Old rateNew rateChange
1 year3.89%3.78%-0.11%
2 year3.69%3.48%-0.21%
3 year3.69%3.68%-0.01%
4 year4.14%3.88%-0.26%
5 year4.14%3.88%-0.26%

Investor fixed package rates, principal and interest

Old rateNew rateChange
1 year3.69%3.18%-0.51%
2 year3.29%2.88%-0.41%
3 year3.29%3.08%-0.21%
4 year3.94%3.28%-0.66%
5 year3.94%3.28%-0.66%

Investor fixed package rates, interest only

Old rateNew rateChange
1 year3.99%3.28%-0.71%
2 year3.49%2.98%-0.51%
3 year3.49%3.18%-0.31%
4 year4.24%3.38%-0.86%
5 year4.24%3.38%-0.86%

Source: RateCity.com.au. Rates include ANZ Breakfree discount.

RateCity.com.au research director Sally Tindall said the big banks were now officially in a rate war.

“On the back of CBA’s changes last week, ANZ has upped the ante by offering up some of the lowest fixed rates out of the big four banks,” she said.

“ANZ isn’t just competing against the other big banks. By offering one of the lowest two-year fixed rates on the market, the bank has its sights on challengers big and small to help regain its market share.

“As was the case with CBA last week, the biggest cuts were reserved for investors paying interest only, who, after spending the last few years in the wilderness, are being increasingly welcomed back into the fold by the banks,” she said.

Lowest fixed rates on RateCity.com.au

Fixed termLenderRate
2 yearsGoulburn Murray Credit Union2.50%
3 yearsWell Home Loans2.68%
5 yearsSt. George Bank2.84%

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