This article is from the Australian Property Journal archive
DESPITE interest rates at record lows, ANZ has gone against the trend by lifting its home loan rates for owner occupiers whilst the National Australia Bank cut its rate for investors paying interest only.
ANZ has increased its 2-year fixed rates by 0.10% for owner occupiers paying principal and interest. Reduce Home Loans increased its 1, 2, and 3 year fixed rates from 2.09% to 2.19%. By doing so, Reduce no longer holds the lowest fixed rate offer in the market, which is currently 2.09% from Freedom Lend and ING for their 2-year fixed rate.
Meanwhile NAB has decreased its fixed rates by between 0.20% and 0.60% for investors paying interest only.
Canstar’s finance expert Steve Mickenbecker said ANZ’s fixed rate increase looks more a fine-tuning than anything else, moving ANZ into line with the 2.29% lowest fixed rate offers at its major competitors.
“At the same time NAB has slashed its interest only investment lending fixed rates by up to 0.60%. NAB’s interest only investment package rate for 3 years fixed is down to 2.69%, only 0.10% above the principal and interest rate.
“The move is quite a repositioning, with NAB’s 3 year interest only rate for investors only 0.40% above the 2.29% for owner occupiers making principal and interest repayments.
Mickenbecker said rate cuts are the wake up call for anyone who has not chased a better deal.
“The battle for investment lending is well and truly on,” he concluded.
| Lowest fixed rates | |||
| Owner Occupiers paying Principal and Interest | |||
| Provider | Rate | Comparison rate | |
| 1-year | Pacific Mortgage Group | 2.15% | 2.46% |
| 2-year | Freedom Lend | 2.09% | 2.42% |
| ING | 2.09% | 3.77% | |
| 3-year | ING | 2.14% | 3.62% |
| Investors paying Interest Only | |||
| Provider | Rate | Comparison rate | |
| 1-year | Firefighters Mutual Bank | 2.49% | 4.26% |
| Teachers Mutual Bank | 2.49% | 4.26% | |
| UniBank | 2.49% | 4.26% | |
| 2-year | Firefighters Mutual Bank | 2.49% | 4.10% |
| Teachers Mutual Bank | 2.49% | 4.10% | |
| UniBank | 2.49% | 4.10% | |
| 3-year | Firefighters Mutual Bank | 2.49% | 3.95% |
| Teachers Mutual Bank | 2.49% | 3.95% | |
| UniBank | 2.49% | 3.95% | |
| Source: Canstar.com.au, 22/05/2020 – 11:00am. | |||
ANZ Changes:
| ANZ Interest Rate Changes
(22/05/2020) |
|||
| Owner Occupiers | |||
| Including Breakfree discount | |||
| New rate | Comparison rate | Change | |
| 2-year | 2.29% | 4.02% | -0.10% |
| Excluding Breakfree discount | |||
| New rate | Comparison rate | Change | |
| 2-year | 2.44% | 4.10% | -0.10% |
NAB Changes:
| NAB Interest Rate Changes
(22/05/2020) |
|||
| Investors | |||
| NAB Choice Package / Private Tailored Package
Interest Only |
|||
| New rate | Comparison rate | Change | |
| 1-year | 2.79% | 4.82% | -0.60% |
| 2-year | 2.69% | 4.63% | -0.60% |
| 3-year | 2.69% | 4.47% | -0.60% |
| 4-year | 3.19% | 4.47% | -0.20% |
| 5-year | 3.19% | 4.36% | -0.20% |
| Interest Only | |||
| New rate | Comparison rate | Change | |
| 1-year | 2.89% | 5.13% | -0.60% |
| 2-year | 2.79% | 4.91% | -0.60% |
| 3-year | 2.79% | 4.70% | -0.60% |
| 4-year | 3.29% | 4.67% | -0.20% |
| 5-year | 3.29% | 4.52% | -0.20% |
