ANZ, Australia’s fourth-largest lender has slashed its lowest variable rate back down to 2.29% – but only for new customers.
The rate cut comes after ANZ increased variable rates by 0.25 percentage points on May 13 for new and existing customers after this month’s OCR hike.
ANZ is not the only big four bank cutting variable rates for new customers.
Last week, Westpac lifted rates for new and existing customers by 0.25% on the majority of its variable rate loans, but reintroduced a honeymoon rate of 2.09% on its lowest variable rate, which increases by 0.4 percentage points after the first two years.
Also last week, CBA launched Unloan, a new digital offering with a starting variable rate of 2.14%.
Sally Tindall, RateCity.com.au research director, said the big bank cuts show that “competition in the mortgage market is still alive and kicking, despite the RBA hikes.”
“While most variable customers will now be dealing with higher repayments, some banks eager for new business are handing out exemptions,” Tindall said. “ANZ’s rate cut comes days after the launch of CBA’s new digital loan and Westpac’s relaunch of its honeymoon loan. Each of these moves puts more heat on the market to keep rates competitive for new customers. If you’re on a variable rate that’s on the rise, don’t just accept your fate. Get yourself a rate cut by switching to a lender willing to put a competitive price tag on your business.”
RateCity.com.au database showed that at least four lenders were still offering variable rates under 2% after the May cash rate hike, including a rate of 1.79% from Homestar Finance.
“Variable rate customers with ANZ and Westpac, in particular, should pick up the phone and ask their bank where their loyalty lies,” Tindall said. “If years of paying your bank thousands of dollars in interest isn’t enough to get a better rate, it could be time to move your business elsewhere.”
RateCity.com.au compiled the current lowest big four bank rates:
|
Rate type |
CBA |
Westpac |
ANZ |
|
|---|---|---|---|---|
|
1-yr fixed |
2.99% |
2.79% |
2.99% |
3.29% |
|
2-yr fixed |
3.79% |
3.69% |
3.99% |
3.99% |
|
3-yr fixed |
4.19% |
4.19% |
4.49% |
4.39% |
|
4-yr fixed |
4.39% |
4.39% |
4.79% |
4.69% |
|
5-yr fixed |
4.49% |
4.59% |
4.99% |
4.89% |
|
Lowest variable |
2.44% |
2.09% for 2 yrs. then 2.49% |
2.44% |
2.29% |
Note: Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply
