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One of Australia’s big four banks has bucked the trend for out of cycle rate hikes, slashing some of its home loan products by as much as 34 basis points.
ANZ, Australia’s third largest lender, has responded to market competition by cutting owner-occupier principal and interest (P&I) rates on its basic home loan, pushing the rate down by 34 basis points to 3.65%. The move makes it the lowest ongoing variable rate offered by a big four bank.
The bank has also cut some of its fixed home loan rates by up to 24 basis points for owner-occupier P&I loans, and up to 13 basis points for investor P&I loans.
Calling the announcement a “surprising move”, Sally Tindall, research director at RateCity.com.au said, “This is a big win for consumers because one of the big four banks is now playing at the pointy end of the home loan market. It’s a huge move from ANZ which now offers the lowest ongoing variable rate from one of the majors.
“It shows the bank is competing hard to get new customers as non-banks threaten their market share. This comes at a time when the market was expecting ANZ to hike rates and not cut them and the royal commission has turned the playing field on its head,” she added.
Further data compiled by RateCity show the lowest ongoing advertised variable home loan rates among the big four now range from 3.69% to 4.34%.
