- ANZ has reduced fixed mortgage rates
ANZ has become the latest major bank to cut fixed mortgage rates in a sign of more relief.
The Big Four bank has cut its fixed mortgage rate for the second time in three weeks, ahead of the Reserve Bank meeting in November.
It has reduced fixed rates by 25 points for borrowers with a 20 percent down payment.
ANZ mortgage rates, which are fixed for two to five years, are now all below 6 percent. It now offers the lowest mortgage interest rate of 5.74 percent – fixed for two and three years – among the Big Four banks.
Canstar Data Insights director Sally Tindall said competition between banks was increasing, with economists expecting the Reserve Bank of Australia to cut interest rates next year.
“This strategic play by ANZ means the bank now offers the lowest fixed rates among the major banks as competition in this area continues to push rates south,” she said.
SWS Bank offers the lowest rate in total of 4.99 percent, also with a fixed term of three years.
ANZ has become the latest major bank to cut fixed mortgage rates in a sign of more relief
The 30-day interbank futures market expects the RBA to cut rates three times next year.
Earlier this month, the country expected four interest rate cuts.
An ANZ borrower with a variable rate of 6.14 percent and a fixed rate of 5.74 percent for three years would not only get a saving of 40 basis points.
That would mean a monthly saving of €163 on an average mortgage of €636,208.
Should the RBA cash rate fall by 75 basis points in 2025, they would miss out on 35 basis points of relief.
In other words, someone who repairs too early would lose out on $140 in savings, which amounts to $1,680 per year.
The inflation figures for the September quarter will be released on Wednesday.
Canstar data insights director Sally Tindall said competition between banks was increasing, with economists expecting the Reserve Bank of Australia to cut interest rates next year
The Commonwealth Bank, Australia’s largest home lender, forecasts headline inflation will ease to 2.9 percent, down from the annual level of 3.8 percent in the June quarter.
This figure includes volatile items like falling gasoline prices and the federal government’s one-time $300 electricity rebates.
But underlying inflation, excluding volatile items, would still be above the RBA’s target of 2 to 3 percent.
CBA expects the trimmed average inflation rate to fall from 3.9 percent to 3.4 percent.