The Simplicity Plus home loan is ANZ's 'no frill' variable rate option, which means it comes with limited extra features but a comparatively lower rate.

ANZ's rate cuts follow in the lead of NAB, which cut basic variable rates for new customers last week.

The lowest variable rate in the Simplicity Plus lineup is now 6.39% p.a (6.39% p.a comparison rate*) for owner occupiers with loan-to-value ratios (LVRs) below 60%.

That's below the lowest advertised variable rate at Westpac and NAB – 6.44% p.a on the NAB Base Variable (6.48% p.a comparison rate*) and the discounted basic variable rate at Westpac (6.76% p.a comparison rate*).

The advertised variable rate on CommBank's Standard Variable Rate mortgage for borrowers with LVRs below 60% is 6.34% p.a, but the comparison rate is higher at 6.76% p.a*, likely because of a $395 annual package fee.

All these rates are still well above what's available elsewhere in the variable market – even ANZ itself has lower rates if you borrow through ANZ Plus.

It's also worth pointing out these are merely the advertised rates – customers might find they can negotiate or might even be offered lower rates.

Sign of things to come?

Mortgage holders on variable rates were likely unsettled on Thursday when Westpac economists officially pushed back their predictions for RBA rate cuts.

Westpac and NAB both now expect the cash rate to remain at its current 4.35% until May 2025.

However, as it stands, CommBank and ANZ still stand by their call that rate cuts will begin in February – this outlook might be a factor in these latest rate changes.

While fixed rates can fluctuate based on factors like bond yields, variable rates are more often influenced by the cash rate.

According to RBA data, the average rate on new variable home loans has been steady at 6.30% p.a from January through to September.

Though, lenders might change variable rates for other reasons, such as in an attempt to attract more customers.

Read more: Other home loan rate changes this week

ANZ home loan changes

Product Rate Change
Simplicity Plus P&I <60% Special Offer Down 15 bps to 6.39% p.a (6.39% p.a comparison rate*)
Simplicity Plus P&I 60-70% Special Offer Down 15 bps to 6.44% p.a (6.44% p.a comparison rate*)
Simplicity Plus P&I 70-80% Special Offer Down 10 bps to 6.54% p.a (6.54% p.a comparison rate*)
Simplicity Plus P&I 80-90% Special Offer Down 15 bps to 7.09% p.a (7.09% p.a comparison rate*)
Investment Simplicity Plus P&I <60% Special Offer Down 5 bps to 6.64% p.a (6.64% p.a comparison rate*)
Investment Simplicity Plus P&I 60-70% Special Offer Down 5 bps to 6.69% p.a (6.69% p.a comparison rate*)
Investment Simplicity Plus P&I 70-80% Special Offer Down 5 bps to 6.79% p.a (6.79% p.a comparison rate*)
Investment Simplicity Plus P&I 80-90% Special Offer Down 15 bps to 7.49% p.a (7.49% p.a comparison rate*)

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Looking for a home loan from one of the major banks? Here are some of your options from Australia's four largest lenders

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
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
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
 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 courtesy of ANZ



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