A second of the big four has slashed its fixed rates, following “hot on the heels” of Commonwealth Bank’s reduction the previous week.
ANZ cut between 0.10% and 0.45% from its fixed rates for owner occupiers paying P&I, and up to 0.26% for interest-only owner occupiers.
For P&I investors, the lender reduced fixed rates by between 0.21% and 0.66%, and by up to 0.86% for investors paying interest-only.
“The market is supercharged right now as banks jockey to win back market share,” explained Canstar group executive of financial services, Steve Mickenbecker.
“ANZ’s market share has lagged well behind in the post GFC period and the lender wants to reverse that trend.
“These cuts see [the bank’s] 2-year packaged fixed rate for owner occupier paying principal and interest become the lowest rate in Canstar’s database at 2.68%.”
The most significant reduction made was for investors with interest-only repayments, with “a huge” 0.86% cut for 4- and 5-year terms.
“The investment cuts are slashing the higher margin banks 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,” said Mickenbecker.
“Investment lending is now a competitive playground for the big banks.”
On 14 February, CBA cut between 0.10% and 0.30% from its fixed rate loans for owner occupiers, and between 0.25% and 0.50% from the fixed rates on offer to investors.
According to Mickenbecker, this was “further confirmation of the competitive heat in the home loan market".
“Commonwealth has repositioned its investment lending rates, signalling a push in the investment market,” he added.
“[CBA’s] interest only investment loans are now a uniform 0.20% higher than investment principal and interest loans, its lowest margin seen since APRA’s crackdown on investment lending.
“Both moves signal a push for growth in the investment lending market."
