ANZ bank has cut their fixed rates for home loans by 100 basis points. Following the same cuts from National Australia Bank and Commonwealth Bank of Australia, ANZ decided to reduce the rate on their one and two year fixed home loans to 5.99 per cent.
The reductions, which take effect today, are welcomed by home owners who have been struggling with rising interest rates earlier this year. The official interest rate has been cut three times by the Reserve Bank of Australia (RBA) in as many months, prompting all the major banks, and most non bank lenders to cut interest rates for home loans.
Interest rates on one-year fixed rate mortgages from Australia's major banks now stand
at 5.99 per cent at NAB, CBA and ANZ, and 6.99 per cent at Westpac.
ANZ is also reducing its variable business loan rates by between 40 and 50 basis points.
Fixed rate mortgages were popular at the start of the year, as rates were rising, but now interest in fixed rate mortgages is falling dramatically as the rates fall, with many home owners opting for variable rate mortgages.
ANZ, NAB and CBA have also cut their variable rates in response to the RBA's moves. Variable rates were cut between 58 and 65 basis points, despite a cut of 75 basis points from the RBA.
Join the discussion on ANZ
Sample ad.
|