- ANZ has cut fixed mortgage rates
ANZ has become the latest major bank to cut fixed mortgage rates in a sign that further relief is on the way.
The Big Four bank has cut rates on its fixed mortgages for the second time in three weeks, ahead of the Reserve Bank’s November meeting.
It has reduced fixed rates by 25 points for borrowers with a 20 per cent deposit.
Mortgage rates, set for two to five years, are now all below 6 percent.
ANZ now offers the lowest mortgage rate of 5.74 per cent (fixed for three years) among the big four banks.
Canstar head of data analytics Sally Tindall said competition between banks was intensifying and economists expected the Reserve Bank of Australia to cut rates next year.
“This strategic move by ANZ means the bank now offers the lowest fixed rate of the majors, as competition in this space continues to push rates down,” he said.
SWS Bank offers the lowest rate overall, at 4.99 percent, also with a three-year fixed term.
ANZ has become the latest major bank to cut fixed mortgage rates in a sign more relief is on the way.
The 30-day interbank futures market expects the RBA to cut rates three times next year.
Earlier this month, it expected four rate cuts.
An ANZ borrower who now has a variable rate of 6.14 per cent and who has fixed it at 5.74 per cent for three years would not only realize a saving of 40 basis points.
That would mean a monthly savings of $163 on an average mortgage of $636,208.
If the RBA cash rate were to fall by 75 basis points in 2025, they would be missing out on 34 basis points of relief.
Put another way, someone who fixes the problem too soon would lose $140 in savings, which would add up to $1,680 a year.
Inflation data for the September quarter will be released on Wednesday.
Canstar head of data analytics Sally Tindall said competition between banks was intensifying and economists expected the Reserve Bank of Australia to cut rates next year.
The Commonwealth Bank, Australia’s largest property lender, predicts headline inflation will slow to 2.9 per cent, down from the annual level of 3.8 per cent in the June quarter.
This figure covers volatile items like falling gas prices and one-time $300 electricity rebates from the federal government.
But core inflation, excluding volatile items, was still expected to be above the RBA’s 2 to 3 percent target.
The CBA expects the trimmed average measure of inflation to fall to 3.4 percent, from 3.9 percent.