Variable rates continue to fall as ANZ joins 25 lenders cutting


Australia’s fourth largest bank, ANZ, cut its base variable rate to 0.43% for homeowners paying principal and interest.

With the increase in risky home loans, ANZ is now offering lower rates to customers with large deposits, like its four major competing banks: CBA and Westpac.

Changes to ANZ variable rates: owner-occupiers

To lend Old rate New rate Switch
Basic variable

(Simplicity PLUS LVR ≤ 70%)




Basic variable

(Simplicity PLUS LVR ≤ 80%)




Note: The above rates apply to homeowners who pay principal and interest.

ANZ now has the same lowest floating rate base for homeowners paying principal and interest as the CBA and NAB, following similar cuts by banks last month.

  • CBA: reduced to 0.40% on October 15 to 2.29%
  • Westpac: reduced from 0.20% on August 24 to 1.99% for 2 years then 2.49%
  • NAB: reduced from 0.40% on October 27 to 2.29%

These variable rate cuts come as banks increase fixed rates.

Analysis by today shows, for the first time since June 2019, that the average of the lowest floating rates of the big four banks is now lower than their 3-year average fixed rate for owner-occupiers paying principal and interest.

Source: Note: Westpac introductory rate was used.

Analysis of the database:

  • 25 lenders have reduced at least one variable rate in the past month.
  • 30 lenders have at least a variable rate of less than 2%.
  • 1.77% is the lowest variable rate.’s research director, Sally Tindall, said: “ANZ has finally bowed to the pressure and reduced its base variable rate.”

“This move by ANZ is an offer to stay competitive in a floating rate market that continues to fall,” she said.

“With the increase in subprime loans, it’s no surprise that ANZ is following the CBA and Westpac and offering lower rates to ideal borrowers with large deposits.

“The average of the lowest floating rates of the Big Four banks is now lower than the average of their 3-year fixed rates for the first time in almost two and a half years.

“Over the past year, variable rates have been largely spared by the Big Four banks as they focused on reducing fixed rates. However, with a record number of landlords now fixed, banks have set their sights on a variable customer base.

“The problem with variable rates is that what goes down can also go up. While the RBA has insisted that the liquidity rate will not increase next year, banks can always raise these variable rates to the low at any time, ”she said.

The Big Four Banks’ Lowest Rates for Homeowner Home Loans

1 year fixed 2.34% 1.99% 1.99% 1.99%
2 years fixed 2.34% 1.99% 2.09% 2.09%
3 years fixed 2.69% 2.29% 2.28% 2.39%
4 years fixed 2.89% 2.69% 2.59% 2.69%
5 years fixed 3.09% 2.99% 2.99% 2.89%
Variable 2.29% 1.99% for 2 years then 2.49% 2.29% 2.29%

Source: Note: Some CBA, ANZ, and Westpac rates have a loan-to-value ratio of up to 70%.

Lowest rates from database

Lender Announced price
1 year fixed Big Bank, Bank of Us 1.59%
2 years fixed Big Bank 1.59%
3 years fixed Community First Credit Union 1.79%
4 years fixed Freedom loan 2.27%
5 years fixed Freedom loan 2.27%
Variable Reduce home loans 1.77%

Source: Rates are for homeowners paying principal and interest. Certain LVR requirements, loan size and location apply.


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