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Major banks slash fixed rates by up to 96 bps

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Charbel Kadib 6 minute read

Two of the big four banks have announced reductions of up to 96 bps across their owner-occupied and investment home loans.

ANZ and the Commonwealth Bank of Australia (CBA) have reduced fixed rates across their owner-occupied and investment home loan products, applying to borrowers with both principal and interest (P&I) and interest-only (IO) terms.

ANZ

ANZ’s fixed rate changes are effective for new applications from Thursday, 25 July.

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The changes to ANZ’s owner-occupied fixed rates are as follows:

  • one-year P&I fixed rates have been cut by 81 bps to 3.43 per cent
  • four-year P&I fixed rates have been cut by 96 bps to 3.68 per cent
  • five-year P&I fixed rates have been cut by 46 bps to 3.68 per cent
  • one-year IO fixed rates have been cut by 70 bps to 4.04 per cent
  • four-year IO fixed rates have been cut by 85 bps to 4.29 per cent
  • five-year IO fixed rates have been cut by 36 bps to 4.29 per cent

Further, changes to ANZ’s investment fixed rates are as follows:

  • one-year P&I fixed rates have been cut by 60 bps to 3.84 per cent
  • four-year P&I fixed rates have been cut by 85 bps to 4.09 per cent
  • five-year P&I fixed rates have been cut by 25 bps to 4.09 per cent
  • one-year IO fixed rates have been cut by 55 bps to 4.14 per cent
  • four-year IO fixed rates have been cut by 75 bps to 4.39 per cent
  • five-year IO fixed rates have been cut by 71 bps to 4.39 per cent

This marks the second time ANZ has repriced its fixed rates this month.

CBA

The Commonwealth Bank has cut its fixed rates by up to 80 bps, effective from Friday, 26 July.

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The changes to CBA’s owner-occupied fixed rates are as follows:

  • two-year P&I fixed rates have been cut by 61 bps to 3.33 per cent (4.78 per cent comparison rate)
  • three-year P&I fixed rates have been cut by 51 bps to 3.43 per cent (4.68 per cent comparison rate)
  • five-year P&I fixed rates have been cut by 60 bps to 3.64 per cent (4.54 per cent comparison rate)
  • two-year IO fixed rates have been cut by 50 bps to 3.94 per cent (4.89 per cent comparison rate)
  • three-year IO fixed rates have been cut by 45 bps to 4.04 per cent (4.83 per cent comparison rate)

Further, changes to CBA’s investment fixed rates are as follows:

  • two-year P&I fixed rates have been cut by 30 bps to 3.74 per cent (5.32 per cent comparison rate)
  • three-year P&I fixed rates have been cut by 30 bps to 3.84 per cent (5.20 per cent comparison rate)
  • five-year P&I fixed rates have been cut by 50 bps to 4.04 per cent (5.04 per cent comparison rate)
  • two-year IO fixed rates have been cut by 30 bps to 4.04 per cent (5.38 per cent comparison rate)
  • three-year IO fixed rates have been cut by 20 bps to 4.14 per cent (5.28 per cent comparison rate)
  • five-year IO fixed rates have been cut by 80 bps to 4.34 per cent (5.17 per cent comparison rate)

Reflecting on CBA’s reductions, Canstar’s finance analyst, Steve Mickenbecker, observed: “Commonwealth Bank’s reductions ranging up to [80 bps] confirm just how competitive the market is for new lending.

“The larger cuts also demonstrate the current favourable conditions for long-term funding.”

Earlier this month, Westpac also slashed rates across its offerings by up to 70 bps.

Westpac’s subsidiaries (Bank of Melbourne, BankSA, and St George Bank) have also reduced rates by up to 65 bps, effective from 22 July.

[Related: Westpac cuts fixed rates by up to 70bps]

 

 

Major banks slash fixed rates by up to 96 bps
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Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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