ANZ has recently followed Commonwealth Bank and NAB in reducing its variable home loan interest rates, despite the Reserve Bank of Australia’s (RBA) indication that an official interest rate cut is still some months away. ANZ now advertises the lowest variable rates among the major banks, with its Simplicity Plus and ANZ Plus loans set at 6.39% and 6.09% for new customers respectively.
This decision comes shortly after NAB enacted a significant 0.40% cut to its variable interest rates, reflecting a broader trend as 12 lenders have lowered at least one variable rate ahead of Christmas. Canstar’s Data Insights Director, Sally Tindall, noted that this marks the third major bank to reduce rates for new customers in recent months, highlighting the intense competition among Australia’s leading lenders.
Tindall encourages mortgage holders to negotiate for better rates, emphasising this is a favourable moment to engage with banks. While ANZ continues to trail behind Commonwealth Bank, Westpac, and NAB in market share, it has experienced the most significant annual growth in residential mortgages, suggesting a strengthening position in the market.