ANZ finally awoke from its deep slumber two weeks ago, slashing fixed mortgage rates for owner occupiers and investors and unveiling a 5.99% p.a. offer.
Monday's adjustments have driven its previous best rate down further to 5.74% p.a., available to residents with loan-to-value ratios (LVR) of 80% or less who fix their rate for two or three years.
That sees the rates on those products as much as 85 basis points lower than they were three weeks ago.
ANZ was the last of its Big Four peers to move fixed rates south in response to a recent bond yield plunge.
NAB had earlier made a flurry of cuts across its fixed home loans and now offers its most competitive advertised rate of 5.89% p.a. (6.62% p.a. comparison rate*) on three-year terms.
Westpac's best advertised offer for owner occupiers willing to fix is also 5.89% p.a., with a comparison rate* of 7.09% for five-year terms.
However, unlike last time, not all ANZ rates headed downwards, with some fixed rates having been lifted for both residents and investors.
A uniform cut of 25 basis points was applied to fixed home loan rates for borrowers with LVRs of 80% or less, while rates for those with LVRs exceeding 80% saw a 15 basis point boost.
See the current rates available from the bank below.
Newly adjusted fixed home loan rates for owner-occupiers
| Term | LVR | New rate (change) | Comparison rate |
|---|---|---|---|
| 1 year | ≤80% | 6.14% p.a. (-25 bps) | 7.13% p.a.* |
| 80-90% | 6.59% p.a. (+15 bps) | 7.35% p.a.* | |
| 2 years | ≤80% | 5.74% p.a. (-25 bps) | 6.94% p.a.* |
| 80-90% | 6.19% p.a. (+15 bps) | 7.19% p.a.* | |
| 3 years | ≤80% | 5.74% p.a. (-25 bps) | 6.81% p.a.* |
| 80-90% | 6.19% p.a. (+15 bps) | 7.08% p.a.* | |
| 4 years | ≤80% | 5.89% p.a. (-25 bps) | 6.75% p.a.* |
| 80-90% | 6.34% p.a. (+15 bps) | 7.03% p.a.* | |
| 5 years | ≤80% | 5.99% p.a. (-25 bps) | 6.69% p.a.* |
| 80-90% | 6.44% p.a. (+15 bps) | 7.00% p.a.* | |
| 7 years | ≤80% | 7.24% p.a. (-25 bps) | 7.24% p.a.* |
| 80-90% | 7.69% p.a. (+15 bps) | 7.59% p.a.* | |
| 10 years | ≤80% | 7.24% p.a. (-25 bps) | 7.24% p.a.* |
| 80-90% | 7.69% p.a. (+15 bps) | 7.63% p.a.* |
These rates are available for those making principal and interest (P&I) repayments and borrowing taking at least $20,000.
Newly adjusted fixed home loan rates for investors
| Term | LVR | New rate (change) | Comparison rate |
|---|---|---|---|
| 1 year | ≤80% | 6.24% p.a. (-25 bps) | 7.67% p.a.* |
| 80-90% | 6.69% p.a. (+15 bps) | 7.89% p.a.* | |
| 2 years | ≤80% | 5.94% p.a. (-25 bps) | 7.45% p.a.* |
| 80-90% | 6.39% p.a. (+15 bps) | 7.70% p.a.* | |
| 3 years | ≤80% | 5.94% p.a. (-25 bps) | 7.28% p.a.* |
| 80-90% | 6.39% p.a. (+15 bps) | 7.55% p.a.* | |
| 4 years | ≤80% | 5.99% p.a. (-25 bps) | 7.15% p.a.* |
| 80-90% | 6.44% p.a. (+15 bps) | 7.44% p.a.* | |
| 5 years | ≤80% | 6.09% p.a. (-25 bps) | 7.06% p.a.* |
| 80-90% | 6.54% p.a. (+15 bps) | 7.37% p.a.* | |
| 7 years | ≤80% | 7.24% p.a. (-25 bps) | 7.49% p.a.* |
| 80-90% | 7.69% p.a. (+15 bps) | 7.84% p.a.* | |
| 10 years | ≤80% | 7.24% p.a. (-25 bps) | 7.40% p.a.* |
| 80-90% | 7.69% p.a. (+15 bps) | 7.78% p.a.* |
Investment home loan borrowers making P&I repayments can access these rates.
The minimum loan amount is $20,000.
Suncorp deal to dent ANZ's profits
ANZ Bank also announced an expected decline in its second-half 2024 profit following the acquisition of Suncorp's banking arm on Monday.
The group stated its second-half profits would take a total post-tax hit of $196 million due to accounting adjustments.
The adjustments included a software amortisation charge of $36 million ( $25 million after tax) and a credit impairment charge (CIC) of $244 million ($171 million after tax).
However, ANZ clarified that these charges had no impact on the assessed value of the Suncorp bank business or the purchase price paid.
The group also noted a net two basis points reduction to its level 2 Common Equity Tier 1 (CET1) capital in its second-half results.
CET1 refers to the capital reserves a bank has to hold to ensure it can absorb unexpected shocks and, in worst case scenarios, prevent collapse.
Banks are required to have at least 4.5% of the value of their assets, like loans and investments, on hand as CET1 capital.
As of March 2024, ANZ has a 13.5% CET1 ratio.
The group completed its $4.9 billion buyout of Suncorp Bank in February after the deal was authorised by the Australian Competition Tribunal, overturning an earlier decision from the Australian Competition and Consumer Commission (ACCC) to block the merger.
Federal Treasurer Jim Chalmers gave the go-ahead for the proposed acquisition in June.
The buyout was said to add almost $60 billion in customer loans to ANZ's balance sheet.
The transaction included $47 billion of Suncorp Bank home loans, $45 billion in retail deposits, and $11 billion in commercial loans.
Photo courtesy of ANZ Bank
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