ANZ Drops Fixed Home Loan Rates by 0.25%
ANZ has reduced fixed home loan rates for both investors and owner-occupiers by 0.25%, but borrowers must have at least a 20% deposit to access these lower rates.
According to Sally Tindall, Director of Data Insights at Canstar, this move positions ANZ as offering the lowest fixed rate among the big four banks, just one week ahead of the RBA’s official cash rate meeting.
Fixed Rates Continue to Fall Across Lenders
The official cash rate has remained at 4.35% since November last year, but competition between lenders has intensified.
- Nearly 30 lenders reduced at least one fixed rate in October.
- ANZ now offers two- and three-year fixed rates from 5.74% for eligible borrowers.
- SWSbank remains the market leader, offering a three-year fixed rate at 4.99%.
“Some borrowers may be persuaded to pause and perform a health check on their mortgage,” Ms Tindall said. “Even though ANZ’s 5.74% rate is unlikely to cause a rush into fixed rates.”
Why Many Borrowers Won’t Benefit
While ANZ’s new rates are good news for some, they won’t be available to the majority of homeowners. Borrowers with less than a 20% deposit will actually face a 0.15% rate increase.
Mozo data shows that 84% of Australians saving for a home loan deposit can’t reach the 20% threshold. With the median house price in Australia at $973,300, that’s a $194,660 deposit needed upfront.
In NSW, where the median home price is $1.22 million, a 20% deposit would be $244,400.
Rachel Wastell, personal finance expert at Mozo, explained:
“Most first-time homebuyers are now likely to face hefty Lender’s Mortgage Insurance (LMI) fees, which add tens of thousands to the cost of a loan—on top of stamp duty, legal fees, and interest.”
Risk-Based Pricing on the Rise
Borrowers unable to reach a 20% deposit may pay a 0.45% premium under ANZ’s revised pricing.
While risk-based pricing is nothing new, experts say ANZ is strategically targeting lower-risk borrowers at a time when property prices are showing signs of cooling.
At Ratebuster, we help you compare rates across all lenders, not just the big four. Whether you’re a first home buyer, investor, or refinancing, you’ll see how ANZ’s new rates stack up against the rest of the market—so you can make the smartest move.
