Another Big Four bank slashes interest rates for mortgage holders – as expert says NOW is the time for home owners to take a key step

Australia’s mortgage war is intensifying with ANZ cutting variable rates, although the Reserve Bank is not expected to provide any relief until next year.

ANZ has cut its home loan rates by 15 basis points, reducing them to 6.09 per cent, the lowest among the banking giants for a variable rate.

This Big Four bank has acted a week after the Commonwealth Bank and NAB also reduced their variable rates.

Major banks are now cutting their interest rates even though the Reserve Bank has not yet eased monetary policy.

The latest move is even more notable, with Westpac and NAB now forecasting an RBA rate cut in May, while ANZ and CBA are predicting easing in February.

But borrowers who want even lower interest rates starting with ‘five’ have to opt for a fixed rate mortgage.

ANZ offers a rate of 5.74 per cent for those who fixed their loan for two or three years, making it the lowest among the big four banks.

ANZ and Westpac offer the lowest four-year fixed rate of 5.89 per cent.