ANZ is the latest bank to cut the interest rates on their fixed rate mortgages. Earlier this week, Westpac, Commonwealth Bank and National Australia Bank all announced cuts to their fixed home loan products, in response to the shock cut in official rates by the Reserve Bank of Australia last week.
The RBA cut rates by 100 basis points last week and shocked many economists who had been predicting a cut of 50 basis points.
ANZ will cut rates by between 0.5 per cent and 0.8 per cent, and take effect immediately. Fixed loan of up to four years will fall 0.5 per cent and terms between five and ten years drop 0.8 per cent.
Westpac have cut their fixed home loan rates by 1.1 per cent and National Australia Bank cut their fixed rate home loan by up to 1.6 per cent. Commonwealth Bank cut rate by up to 1.55 per cent.
The interest rate on a one-year fixed home loan now stands at 7.59 per cent at ANZ, 7.29 per cent at NAB, 7.19 per cent at Westpac, and 7.14 per cent at CBA ...
Last week, all major banks and non-bank lenders were quick to respond to the RBA's one per cent cut to official interest rates by cutting standard variable rates by 80 basis points. There had been some calls for the banks to explain why they have not passed on the full 100 basis point savings to borrowers taking out a standard variable rate.
The cuts this week to fixed mortgage interest rates are in response to new figures that show demand for fixed rate loans has fallen for the second consecutive month and now only account for 4.6 per cent of all new home loan approvals. The downward trend in fixed rate appeal may be due to borrowers wanting to see what the RBA does next and if official rates will be cut again.The news will be welcomed by anyone thinking of fixing their home loan, and could indicate further cuts may be to come on other loans also. The ANZ cuts take place straight away and all new home loan applicants can apply for the new loan rate if they qualify.
Join the discussion on ANZ