Lender’s cheapest fix rises to 6.34%; Westpac still offers the lowest rates among majors
ANZ has increased fixed home loan rates by as much as 0.40 percentage points, 19 days after its previous rate increase, leaving the bank without a fixed-rate option below 6%.
The bank’s lowest fixed rate is now 6.34% on a one-year term.
Among the major banks, Westpac is still offering the lowest one-year fixed rate at 5.79%, based on publicly tracked rates.
| Big four banks’ lowest fixed rates | ||||
|---|---|---|---|---|
| CBA | Westpac | NAB | ANZ | |
| 1-year | 6.49% | 5.79% | 6.04% | 6.34% |
| 2-year | 6.34% | 5.89% | 6.09% | 6.39% |
| 3-year | 6.59% | 5.99% | 6.19% | 6.54% |
| 4-year | 6.64% | 6.09% | 6.19% | 6.54% |
| 5-year | 6.79% | 6.09% | 6.19% | 6.59% |
| Source: Source: Canstar.com.au. Rates based on owner-occupier fixed rate loans. LVR requirements apply. | ||||
Data from rate-tracking firm Canstar indicates 52 lenders have raised at least one fixed rate since the most recent Reserve Bank of Australia (RBA) rate rise. The lenders listed include Commonwealth Bank, NAB and ANZ, along with Macquarie, Bendigo, ING and Bank of Queensland.
Source: Canstar.com.au
The same tracking shows the average one-year fixed rate is now 0.27 percentage points above the average variable rate, a shift from late last year when the two averages were broadly aligned.
The lowest fixed rate available across the market is reported at 5.59%, offered by Regional Australia Bank, Pacific Mortgage Group and Northern Inland Credit Union.
“Seeing ANZ’s lowest fixed rate jump to 6.34% is a stark reminder of how quickly the interest rate tide has turned,” said Sally Tindall (pictured right), data insights director at Canstar.com.au.
“With over 50 lenders hiking fixed rates in just the last 15 days, it’s clear the market is pricing in further hikes to come, as the fallout from the war in the Middle East starts to hit costs across Australia.
Tindall pointed out that fixed rates tend to act as an early indicator of where borrowing costs are heading. “When a bank ratchets them up twice in less than three weeks, it’s a sign there’s a lot more turbulence ahead,” she said.
“ANZ is far from alone in hiking fixed rates. Three of the big banks have now hiked these rates in the space of five days. Westpac, now the lowest out of the big banks in the fixed rate space, is likely to be days away from lifting rates as well.
“Westpac’s own economists have ramped up their forecast of how many hikes we still have waiting in the wings, with the bank now predicting we’ll see another three in the next three RBA meetings.”
Tindall advised borrowers considering a switch to fixed rates to take a clear-headed approach, weigh the risks on both sides, and factor in the additional conditions and restrictions that often apply when locking in a rate.
“The cash rate could well rise again as soon as next month, but the fallout from the war, if it hits the Australian economy and jobs market hard, could also push the RBA into reverting back to cuts in the not too distant future,” she said.
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