ANZ finally joins Big Four with fixed rates starting with 5
ANZ has finally cut interest rates on its fixed rate home loans, with the bank now offering loans for under 6% p.a.
The new rates are available to owner-occupiers with a loan-to-value ratio (LVR) below 80% – that’s equivalent to a deposit of 20% for home buyers.
ANZ’s new fixed interest rates
| Fixed rate term | New interest rate | Comparison rate* | Change (% p.a.) |
| 1 year | 6.39% p.a. | 7.15% p.a. | -0.30% |
| 2 years | 5.99% p.a. | 6.99% p.a. | -0.55% |
| 3 years | 5.99% p.a. | 6.88% p.a. | -0.60% |
| 4 years | 6.14% p.a. | 6.84% p.a. | -0.60% |
| 5 years | 6.24% p.a. | 6.80% p.a. | -0.60% |
Source: Mozo.com.au accurate as at 11 October 2024, based on LVR 80% or less. Rates shown include the ANZ fixed rate discount of 0.20% p.a. from the index rate.
ANZ is the last of the Big Four banks to move on fixed rates. Cuts first started to come through back in July, when NAB was the first to shift its three-year fixed rate.
Westpac joined NAB a month later by dropping its fixed rates, followed swiftly by CommBank putting its rates on the chopping block.
Despite this, ANZ remained a hold out, even allowing time for NAB to cut its fixed rates again in early October.
How do ANZ’s fixed rates stack up?
ANZ’s two-year fixed rate of 5.99% p.a. puts it just below the current average in the Mozo database, which is 6.12% p.a.†
The bank’s new rate of 5.99% p.a. for a three-year fixed loan also falls below the current average, which is 6.06% p.a. according to our data.
With rates now starting at 5.99% p.a., ANZ has finally joined the other Big Four banks in offering fixed rates starting with 5 – see the table below for a look at what’s available from ANZ, CommBank, NAB and Westpac.
| Bank | Home loan | 3 year fixed rate (% p.a.) | Comparison rate (% p.a.) |
| CBA | Fixed Rate Home Loan (Wealth Package) | 5.89% | 7.79% |
| NAB | Tailored Home Loan | 5.94% | 6.78% |
| Westpac | Fixed Options Home Loan – Premier Advantage Package (70-80% LVR) | 5.99% | 7.42% |
| ANZ | Fixed Rate (<80% LVR) | 5.99% | 6.89% |
| CBA | Fixed Rate | 6.04% | 8.11% |
| Westpac | Fixed Options Home Loan (70-80% LVR) | 6.19% | 8.16% |
| Source: Mozo.com.au accurate as at 11 October 2024, based on a $400,000 owner occupier home loans paying principal and interest. | |||
What fixed rate cuts mean for 2025
It’s difficult to know exactly when interest rates will finally come down, but when it comes to the Big Four, CBA remains the only major player predicting the Reserve Bank of Australia (RBA) will hand down a rate cut by December.
Meanwhile, ANZ, NAB and Westpac are forecasting interest rates won’t come down until the first quarter of 2025.
Mozo’s money expert, Rachel Wastell, says the recent fixed rate cuts across the major banks do suggest the end of the tightening cycle is near, but she warns borrowers to be cautiously optimistic.
“Until inflation is consistently under control, borrowers will need to remain cautious and stay informed. The road to recovery is in sight, but it’s not without potential bumps along the way,” she says.
“We may not see a December rate cut, but the latest moves by ANZ, NAB, Westpac, and CBA do offer borrowers some hope.
“The slashing of fixed rates suggests that lenders are preparing for a more stable rate environment moving into 2025, providing some much needed breathing room for both owner occupiers and investors.”
For those considering a new home loan, it’s important to note that the current average variable rate in the Mozo database is 6.76% p.a., while the lowest variable rate according to our data is 5.88% p.a.†
So, while the major banks have been cutting their fixed rates of late, we suggest you should still compare home loans – and weigh up both variable and fixed options – because there are more competitive options out there.
† Source: Mozo.com.au as at 11 October 2024, average fixed rate for owner-occupier, principal & interest home loans at $400,000, 80% LVR.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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