Last month, ANZ and NAB were the first of the big four banks to cut advertised fixed rates below the 6% mark although many smaller lenders passed that milestone some months ago.

See also: Best fixed rate home loans from 5.34%

ANZ kicked off the week by taking up to 25 basis points off the range of its fixed rates for both residential and investment loans for fixed periods up to 10 years.

ANZ is one of the few major lenders on the market to offer seven- and 10-year lock-in periods.

Its new lowest rate is 5.74% p.a. for owner-occupiers with a loan-to-value ratio (LVR) of 80% or less, paying principal and interest (P&I) and fixing for two or three years (comparison rates* 6.94% p.a. and 6.81% p.a. respectively).

Here's a selection of ANZ's new rate for owner occupiers making P&I repayments:

Fixed period LVR Rate change (%) New rate Comparison rate*
1 year 80% or less -0.25 6.14% p.a. 7.13% p.a.
80-90% -0.15 6.59% p.a. 7.35% p.a.
2 years 80% or less -0.25 5.74% p.a. 6.94% p.a.
80-90% -0.15 6.19% p.a. 7.19% p.a.
3 years 80% or less -0.25 5.74% p.a. 6.81% p.a.
80-90% -0.15 6.19% p.a. 7.08% p.a.
4 years 80% or less -0.25 5.89% p.a. 6.75% p.a.
80-90% -0.15 6.34% p.a. 7.03% p.a.
5 years 80% or less -0.25 5.99% p.a. 6.69% p.a.
80-90% -0.15 6.44% p.a. 7.00% p.a.

ANZ's seven- and 10-year fixed rates are considerably higher at 7.24% p.a. (7.24% p.a. comparison rate*) for owner occupiers with LVRs of 80% or less, and 7.69% p.a. for those with LVRs between 80-90% (7.59% comparison rate* - 7 years; 7.63% p.a. comparison rate - 10 years).

This week's cuts also take some of ANZ's investor fixed home loan rates below the 6% mark for those with LVRs of 80% or less, making P&I repayments, and locking in for one, two, or three years.

Variable rate movers

Although fixed rates have been plunging for several months now, not too many borrowers are being tempted to lock in.

According to the latest lending data, fixed rate loans still only account for less than 2% of new home lending in Australia.

See also: Lowest variable rate home loans

The punters are no doubt waiting for variable rates to follow suit and that's looking more promising with the release of the latest CPI inflation data on Wednesday, showing headline inflation at 2.8% is now the slowest rate of growth in three-and-a-half-years.

Low inflation is what the Reserve Bank has been looking for in making a move to cut the cash rate which, the big banks now all agree, is likely to happen in February 2025.

Perhaps anticipating an approaching market flurry, a few smaller lenders got in early to cut their variable rates this week:

  • Auswide Bank has taken 20 basis points off its Freedom Package Variable loans for borrowers with 80% LVR or less and making P&I repayments, taking the new rate to 5.99% p.a. (6.34% p.a. comparison rate*).
  • People's Choice has cut its Basic and Home Loan Package variable rates for new owner occupier and investment loans by 10 basis points.Its best new rate is 5.89% p.a. (5.90% comparison rate*) for a Basic owner occupier loan for borrowers making P&I repayments with ≤70% LVR.
  • BankVic has also shaved another six basis points off its variable Offset and discounted Offset rate for police officers and emergency service workers for loans with LVRs up to 95%.The new rates are 6.14% p.a. (6.14% p.a. comparison rate*) and the discounted 6.08% p.a. (6.08% p.a. comparison rate*).
  • Brisbane-based Firstmac has knocked up to 60 basis points off a range of its variable home loan rates for owner occupiers and investors although it's offering no rates under 6% p.a.

Fixed rate movers

The market has also seen the ubiquitous fixed rate plunge continue this week:

  • Bank Australia has taken an attention-grabbing 50 basis points off its two-year fixed home loan rates, dropping both its Basic and Offset owner occupier rates to 5.64% p.a. (6.08% p.a. comparison rate* and 6.36% p.a. comparison rate* respectively).It's the same rate being offered on some of its ≤80% LVR Premium Package loans, fixed for two, three, or five years as part of a wider 10-basis point fixed rate cutting spree this week.
  • Credit Union SA has slashed up to 40 basis points off its fixed home loans and fixed-rate package loans for both owner occupiers and investors.Its best new rate is 5.69% p.a. (6.59% p.a. comparison rate*) for owner occupiers with ≤97% LVR paying P&I and fixing for three years under its package deal.
  • Qudos Bank has dropped its fixed home loan rates for owner occupiers and investors by up to 20 basis points.Its best new rate is 5.84% p.a. (6.16% p.a. comparison rate*) for an owner occupier with 80% LVR making P&I repayments and locking in for three years.
  • Australian Mutual Bank has a new special offer investment rate of 5.49% p.a. (6.86% p.a. comparison rate) for new lenders fixing for two years, paying interest only. 

Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance. 90% LVR
  • Fast turnaround times. Can meet 30-day settlement
  • No monthly or ongoing fees, split with low-rate variable loan
 Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely – Access your additional payments when you need them
  • Home loan specialists available today
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Breno Assis on Unsplash



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy