ANZ has made another adjustment to its fixed home loan interest rates, becoming the final major bank to lower these rates. However, the new, reduced rates are only available to low-risk borrowers, whilst rates for those deemed high-risk have risen by 0.15%. Specifically, owner-occupiers with a loan-to-value ratio (LVR) of 80% or lower are benefitting from a 0.25% decrease. This change reflects a strategic move by ANZ to secure lower-risk clients amidst an unpredictable economic environment, according to Mozo finance expert Rachel Wastell.
Wastell noted that while those with strong equity are welcomed by these rate cuts, higher-risk borrowers, particularly those with an LVR exceeding 80%, are facing increasing challenges. The rise in costs, particularly regarding lenders mortgage insurance, exacerbates the situation for these borrowers.
While major lenders have begun lowering fixed rates since August in anticipation of potential cuts to the official cash rate, it remains uncertain when this will occur. Reserve Bank Governor Michele Bullock has indicated that a reduction is not imminent, noting that responses will depend on forthcoming economic data, including consumer price index figures set for release. Despite promising developments in reducing inflation, Treasurer Jim Chalmers emphasised that cost-of-living pressures will continue.