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Major banks cut fixed rates

Major banks cut fixed rates

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Two major banks have announced rate cuts of up to 50 basis points to their fixed rate home loan offerings.

ANZ Bank and the National Australia Bank are the last of the big four to announce cuts to their fixed rates, following similar announcements from the Commonwealth Bank and Westpac.

NAB has dropped its five-year fixed rate for owner-occupied, principal and interest home loans by 50 basis points, from 4.59 per cent to 4.09 per cent.

The bank has also reduced its fixed rates on investor loans by up to 35 basis points, with rates starting from 4.09 per cent.

As of Friday (9 March), ANZ also dropped fixed rates on its “interest in advance”, interest-only home loans by up to 40 basis points, with rates starting from 4.11 per cent.

Further, fixed rates on its owner-occupied, principal and interest home loans have fallen by 10 basis points, with rates now starting from 3.99 per cent.

RateCity money editor Sally Tindall believes that the rate movements have been influenced by the banks’ cash rate expectations.

“The fixed rate war shows our big banks are not pricing in a rate hike anytime soon,” Ms Tindall said.

“The series of cuts show competition has returned to the investor interest-only space. After reaching their caps imposed by APRA, the big banks are opening up their books again.”

Ms Tindall noted that the changes would be welcomed by borrowers seeking financial stability.

“This is good news for people in the market who are looking for the financial security fixed rates can bring.”

Ms Tindall concluded: “Five years without having to worry about a rate hike is the kind of peace of mind a lot of home hunters are looking for.”

[Related: Demand for fixed rates continues to fall]

Major banks cut fixed rates
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