A big four bank and a non-major lender have announced variable and fixed mortgage rate reductions across both their owner-occupied and investment home loan offerings.
ANZ and Macquarie Bank have reduced their home loan rates by up to 60bps, with changes across both lenders effective from 10 May.
For its Breakfree discount package, ANZ has announced the following rate changes for owner-occupiers:
ANZ has also made the following changes for Breakfree investment loans:
Meanwhile, Macquarie Bank has reduced variable and fixed mortgage rates by up to 51bps across its Basic and Offset packages.
The non-major’s variable rate changes are as follows:
Macquarie’s fixed rate changes include:
ANZ and Macquarie are among several lenders that have reduced rates across their fixed rate home loans over the past few months.
Reflecting on the changes, comparison website Canstar’s finance analyst, Steve Mickenbecker, said lenders are preempting an expected cut to the official cash rate from the Reserve Bank of Australia (RBA).
“Rate changes are running rife this week,” he said. “Macquarie and ANZ are joining the group of lenders reducing home loan rates ahead of the Reserve Bank curve.”
Mr Mickenbecker added: “The banks are anticipating an official cut to the cash rate in the coming months and are not waiting on the Reserve Bank to move.
“They are instead using this period to sharpen the pricing pencil to attract new business.”
However, the analyst noted that existing borrowers would need to wait for a cash rate adjustment before they too receive lower mortgage rates.
The RBA was expected to drop the official cash rate for the first time since August 2016 when its monetary policy board meeting was held last week.
However, the central bank opted to hold the cash rate at 1.5 per cent, with some analysts, including AMP Capital chief economist Shane Oliver, attributing the RBA’s decision to the current political environment, with the federal election looming.
Mr Oliver added that AMP has “pencilled in” a rate cut in June to offset the continued weakness in the housing market, flat inflation and slow economic growth.
[Related: Lender drops rates by up to 30bps]
Charbel Kadib is a journalist on The Adviser and Mortgage Business.
Before joining Momentum Media in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.
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