Add CategoryThe smallest of the big four banks unveiled new variable rates for eligible borrowers turning to its Simplicity Plus home loan product.
The bank has reduced the lowest variable rate it advertises (excluding its app-exclusive ANZ Plus Home Loan) by 15 basis points to 6.39% p.a. (6.39% p.a. comparison rate*).
This rate includes a special offer discount and is available to eligible owner-occupiers with at least 40% deposit or equity in their property.
ANZ also remains the only big four bank currently offering a cashback deal to refinancers:
The new rates advertised on the Simplicity Plus product for borrowers making principal and interest repayments are as follows:
| Borrower | LVR | Change | New Rate | Comparison Rate* |
|---|---|---|---|---|
| Owner-occupier | <60% | -15bp | 6.39% | 6.39% |
| Investor | -5bp | 6.64% | 6.64% | |
| Owner-occupier | 60-70% | -15bp | 6.44% | 6.44% |
| Investor | -5bp | 6.69% | 6.69% | |
| Owner-occupier | 70-80% | -10bp | 6.54% | 6.54% |
| Investor | -5bp | 6.79% | 6.79% | |
| Owner-occupier | 80-90% | -15bp | 7.09% | 7.09% |
| Investor | -15bp | 7.49% | 7.49% |
How do ANZ's new variable rates compare to other big four banks'?
The latest variable rate changes from ANZ see its Simplicity Plus home loan among the most competitive available across the big four banks.
- CommBank offers the lowest basic variable home loan rate at 6.34% p.a. (6.72% p.a. comparison rate*) on its Standard Variable Rate mortgage, but this rate is for borrowers with its Wealth Package, requiring a $395 annual fee
See also: NAB slashes popular variable rates by up to 0.6%
For those seeking lower variable rates, both ANZ and CommBank offer self-service, app-based home loans:
More competitive rates are available elsewhere on the market, as the below table shows:
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6.04% p.a. 6.06% p.a. $3,011 Principal & Interest Variable $0 $530 90% 5.99% p.a. 5.90% p.a. $2,995 Principal & Interest Variable $0 $0 80% 6.14% p.a. 6.16% p.a. $3,043 Principal & Interest Variable $0 $350 60% Important Information and Comparison Rate Warning Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option Link Compare Promoted Product Disclosure
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ANZ continues to tip February cash rate cut
The big four are once again split on their forecasts for the first cash rate cut.
ANZ, along with CommBank, is still expecting the Reserve Bank of Australia (RBA) to cut in February, though both acknowledge that borrowers may be left waiting longer.
"We still see the Reserve Bank's first rate cut in February 2025,' ANZ head of Australian economics Adam Boyton said following the release of the RBA's November meeting minutes on Tuesday.
"The balance of the activity data had suggested the risks of a later start to the easing cycle were rising.
"The tone in the minutes today tempers that risk a little.'
In contrast, Westpac pushed back its forecast for the first rate cut to May in the wake of the minutes.
"An earlier start in February or March is still possible, but it is no longer more likely than a May start date," Westpac chief economist Luci Ellis said on Thursday.
Westpac is now in agreement with NAB, which delayed its prediction for the first cut last week.
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