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Home Loan HandbookANZ and Macquarie, two prominent Australian financial institutions, have recently made significant adjustments to their fixed home loan rates, a move that precedes the forthcoming Reserve Bank of Australia (RBA) cash rate decision.
ANZ, one of the country’s leading banks, has decided to reduce its one-year fixed rates for both owner-occupiers and investors who are repaying principal and interest. This rate cut, amounting to 0.25 percentage points for owner-occupiers and 0.15 percentage points for investors, marks ANZ’s first adjustment to fixed rates since October 2024. Similarly, Macquarie, recognized as Australia’s fifth-largest home loan lender, has also taken steps to lower its fixed rates. The bank has decreased its one-year rate by 0.20 percentage points, while adjustments of 0.16 and 0.10 percentage points have been made to its two- and three-year terms, and four- and five-year rates, respectively.
These recent rate modifications by ANZ and Macquarie follow similar actions by several regional banks and credit unions, such as IMB Bank, Illawarra Credit Union, Greater Bank, and Newcastle Permanent, which have implemented reductions ranging from 0.05 to 0.30 percentage points across various fixed terms.
ANZ’s current one-year fixed rate for owner-occupiers now stands at 5.89%, positioning it as the second-lowest among the Big Four banks, trailing behind Westpac at 5.79%. It is noteworthy that ANZ’s rate adjustment places it below the average rate of 6.03%.
The adjustments made by ANZ and Macquarie are part of a broader trend within the banking sector, with NAB and Westpac having previously lowered their one-year fixed rates in response to the RBA’s cash rate cut in February. Commonwealth Bank also made revisions to its fixed rates shortly thereafter.
While the major banks have passed on the February rate cut in full to their customers on the variable rate side, some lenders, such as Virgin Money and BOQ Specialist, have chosen not to follow suit. Police Credit Union, on the other hand, has opted to apply a 25-basis-point reduction to most loans while reducing its lowest variable rate offer by 15 basis points.
These rate adjustments by key players in the Australian banking industry signal a proactive approach to aligning with prevailing economic conditions and customer demands. As the market awaits the upcoming RBA cash rate announcement, these moves by ANZ and Macquarie underscore the dynamic nature of the home loan landscape, where competitive rates and customer-centric strategies play a crucial role in shaping the financial services sector.
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