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Home loan hikes continue as ANZ joins CBA and Westpac raising fixed rates

Home loan hikes continue as ANZ joins CBA and Westpac raising fixed rates

The fixed home loan rate hikes keep coming with ANZ today following the lead of CBA and Westpac by raising rates.

ANZ has increased its 2-, 3-, 4- and 5-year fixed rates for owner-occupiers paying principal and interest by up to 0.35 per cent.

However, like CBA, Australia’s fourth largest bank has decreased its 1-year fixed rate to 1.99 per cent, ensuring it still has one rate under 2 per cent.

On Tuesday, Westpac hiked its 2- to 5-year fixed rates for owner-occupiers by 0.10 per cent and last Friday, CBA hiked its 2-, 3- and 4-year fixed rates for owner-occupiers by 0.10 per cent.

ANZ home loan rate changes for owner-occupiers

LoanOld rateNew rateChange
1-year fixed

2.04%

1.99%

-0.05%

2-year fixed

1.94%

2.09%

+0.15%

3-year fixed

2.04%

2.39%

+0.35%

4-year fixed

2.49%

2.69%

+0.20%

5-year fixed

2.69%

2.89%

+0.20%

Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395 for a loan to value ratio of 80% or less.

Rate changes in the last month: lenders that have moved at least one rate.

Lenders that have cutLenders that have hiked
1-year fixed82
2-year fixed410
3-year fixed219
4-year fixed013
5-year fixed013
Variable242

Source: RateCity.com.au. Data is from 23 September to 22 October 2021 inclusive.

RateCity.com.au research director, Sally Tindall, said: “The tide is going out on ultra-low fixed rates.”

“The cash rate might be on hold until 2024 but the banks believe the cost of funding will continue to increase as the economy rebounds,” she said.

“Like its big bank competitors, ANZ has kept one rate under 2 per cent, but this rate is unlikely to attract huge take up seeing as it’s just for 12 months.

“Three of the four big banks have now hiked fixed rates within eight days of each other. We expect more lenders to follow in their wake.

“That said, there are still 151 fixed rates under 2 per cent,” she said.

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1 yr fixed

1.99%

1.99%

2.09% 

1.99%

2 yr fixed

2.09%

1.99%

1.99%

2.09%

3 yr fixed

2.29%

2.08%

2.18%

2.39%

4 yr fixed

2.39%

2.59%

2.49%

2.69%

5 yr fixed

2.99%

2.89%

2.79%

2.89%

Variable

2.29%

1.99% for 2 yrs

then 2.49%

2.69%

2.72%

Source: RateCity.com.au. Note: CBA and Westpac rates are for a loan to value ratio of up to 70%.

Lowest rates on the RateCity.com.au database

LenderAdvertised rate
1 yr fixedGreater Bank, Bank of Us

1.59%

2 yr fixedGreater Bank

1.59%

3 yr fixedCommunity First Credit Union

1.79%

4 yr fixedFreedom Lend

2.27%

5 yr fixedFreedom Lend

2.27%

VariableReduce Home Loans

1.77%

Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR and location requirements apply. 

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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