ANZ slashes interest rates for Australians with a mortgage

ANZ has become the latest of the Big Four banks to cut fixed mortgage rates, with generous relief for borrowers expected next year.

The banking giant cut the three-year fixed rate by 60 basis points to 5.99 percent on Friday, while the two-year fixed rate was cut by 55 basis points to the same level.

Australia’s Big Four banks are now all offering three-year fixed mortgage rates under 6 percent for borrowers with a 20 percent deposit, following ANZ’s latest move.

This is happening as the futures market predicts four rate cuts by the Reserve Bank in 2025.

RateCity money editor Laine Gordon said ANZ had given in to its competitors in a sign that other lenders were also likely to cut their fixed rates.

“ANZ is the last big four bank to cut fixed home loan rates below 6 per cent, but the bank has succumbed to the competition,” she said.

‘The number of lenders joining the under-6s club is growing rapidly.’

However, the lowest fixed interest rates offered by the Big Four banks are still higher than Abal Banking’s market-leading variable rate of 5.75 percent.

This means that customers with lower variable rates would benefit if the RBA were to cut rates by 100 basis points, as predicted.

The smaller players still offer lower fixed rates than the Big Four banks.

SWS Bank has the lowest fixed rate of 4.99 per cent, meaning a borrower now on a variable rate, starting with a ‘six’, won’t miss out if the RBA cuts rates four times next year.

Macquarie Bank offers fixed interest rates for two, four and five years of 5.39 per cent.