Powered by MOMENTUM MEDIA
the adviser logo
Lender

Major banks slash fixed rates by up to 96 bps

by Charbel Kadib5 minute read
Percentage

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.

Advertisement
Advertisement

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.

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]

 

 

percentage ta

Charbel Kadib

Charbel Kadib

AUTHOR

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

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

CEO Sleepout Pepper Money

Mortgage industry raises more than $160k in CEO Sleepout

On 23 June 2022, several CEOs and directors in the mortgage and finance industry spent a night without shelter to...

READ MORE
alex whitlock

New membership program revealed for The Adviser

Members will be able to access exclusive sales and marketing strategy, business intelligence and exclusive market...

READ MORE
Hot property TA

Hot Property: The biggest property headlines from the week 27 June to...

Welcome to The Adviser’s weekly round-up of the headline stories and news that are important not only for the...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more