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ANZ now has the lowest fixed rates among the majors, following cuts to its one-to-five-year terms.
As of today, the fixed rate for each term is:
- One year (5.29 per cent)
- Two year (5.19 per cent)
- Three year (5.34 per cent)
- Four year (5.74 per cent)
- Five year (5.74 per cent)
“This move by ANZ consolidates its lead as the lowest-cost fixed rate lender out of the majors. The bank is factoring in the possibility of further cash rate cuts, which could be coming down the line as soon as next week,” said Canstar’s data insights director Sally Tindall.
“ANZ could also be looking to shore up its loan book by locking in more customers on fixed rate deals. The bank’s most recent half year results show that just 3 per cent of its residential mortgage book is on a fixed rate contract. This means the remaining 97 per cent on variable rates are free to move at any time without major penalties.”
The latest cut puts ANZ ahead of NAB, who now has the second lowest rates on fixed one-to-five-year terms.
Despite the low rates provided by ANZ, smaller lenders are still leading the charge with far lower rates.
Some of the lowest rates for one-to-five-year terms are:
- One year – Pacific Mortgage Group (4.99 per cent)
- Two year – Easy Street (4.95 per cent)
- Three year – BankVic (4.98 per cent)
- Four year – BOQ and People’s Choice (5.29 per cent)
- Five year – BOQ, People’s Choice, and Heritage Bank (5.29 per cent)
Tindall continued: “While ANZ’s fixed rates are streaks ahead of the other big banks, particularly on shorter terms, they’re still a far cry from the lowest fixed rates in town, with a total of 13 different lenders now offering at least one fixed rate under 5 per cent.”
“If you’re looking to lock in your rate, don’t go aiming for one that starts with a 5 or a 6. You should be looking in the 4’s.”
With the RBA’s next monetary policy meeting less than a week away, and some industry heads predicting a cut, more lenders could begin dropping rates in anticipation.
Following two cuts for 2025 already, borrowers are experiencing some rate relief.
Each of the 2025 cash rate cuts saw almost all lenders immediately pass along the full 25 basis point recommendation.
