Australia’s Big Four banks—including ANZ—have recently adjusted their home loan interest rates in response to changes in the Reserve Bank of Australia (RBA) cash rate. This guide helps you understand ANZ’s current rates, how they compare in the market, and what you can do to secure the best deal.
Overview of ANZ’s Rate Changes
In late May, ANZ passed on a 25-basis-point reduction in their variable home loan rates, effective 30 May 2025, mirroring the RBA’s cash rate cut anz.com.au+1finder.com.au+1finder.com.au+8anz.com.au+8anz.com.au+8anz.com.au+9anz.com.au+9anz.com.au+9finspo.com.aumozo.com.au+2finder.com.au+2anz.com.au+2anz.com.au+7yourmortgage.com.au+7news.com.au+7news.com.au+2theaustralian.com.au+2finspo.com.au+2news.com.au+4abc.net.au+4anz.com.au+4. This update applies to owner-occupied, investment, and line-of-credit products.
Current ANZ Variable Home Loan Rates
- Standard Variable Home Loan (LVR ≤ 80%): 6.74% p.a. index (approx.) anz.com.auanz.com.au+4anz.com.au+4anz.com.au+4.
- For LVR > 80%, the rate increases to around 6.94% p.a. anz.com.au.
- Simplicity PLUS (no-frills loan): 7.49% p.a. index finder.com.au+14anz.com.au+14anz.com.au+14.
These are base index rates; actual rates will factor in any discounts or package fees.
Fixed Rate Options at ANZ
Fixed rate offers include:
- 2-year fixed (≤ 80% LVR): around 5.49% p.a. anz.com.au+10anz.com.au+10anz.com.au+10.
- Competitive 1–2-year fixed rates, with ANZ recently being the most aggressive among Big Four banks for short-term fixed loans news.com.au+1mozo.com.au+1.
You can lock in a fixed rate for up to 5 years, with an optional 90-day rate-lock fee ($750 per $1 million borrowed) anz.com.au+10anz.com.au+10anz.com.au+10.
Factors Affecting ANZ Rates
Loan-to-Value Ratio (LVR)
Loans with higher LVRs attract smaller discounts. LVR ≤ 80% earns better rates than > 80% finder.com.au+3anz.com.au+3anz.com.au+3.
Loan Type & Features
Standard loans with features (like offset accounts) often come with slightly lower rates than basic or package loans.
RBA Cash Rate & Market Trends
ANZ’s rate cut followed the RBA’s May 2025 cash rate drop. They predict two additional cuts in 2025, potentially lowering variable rates further anz.com.au+2finder.com.au+2theaustralian.com.au+2anz.com.au+12savings.com.au+12news.com.au+12.
Comparing ANZ with Other Major Lenders
ANZ’s current index rates (6.74–6.94%) sit slightly above market averages (~5.8%), which include smaller lenders offering ~5.3–5.6% . While bigger banks usually lag behind digital and non-bank lenders, ANZ remains competitive on short-term fixed rates.
Tips to Secure a Lower Rate
- Refinance smarter: ANZ’s 25 bps cut equals ~$80‑100/month savings on a $500k loan brokerdaily.au.
- Target ≤ 80% LVR.
- Consider short-term fixed: ANZ’s 5.49% 2‑year fixed is best among Big Four finder.com.au+4anz.com.au+4news.com.au+4.
- Shop around smaller lenders: Some offer <5.5% variable rates anz.com+13theaustralian.com.au+13mozo.com.au+13.
- Ask for discounts: Especially if you have multiple ANZ products.
- Use brokers if needed: They may access exclusive rates.
- Rate lock option: Protect yourself during fixed-rate setup delays.
Understanding ANZ Rate Cuts & Repayment Effects
ANZ adjusts repayments only if requested—otherwise lower rates result in faster principal paydown anz.com.au+12finder.com.au+12anz.com.au+12abc.net.au+5anz.com.au+5brokerdaily.au+5news.com.au+1anz.com.au+1. Ask your branch or broker about getting repayments reduced instead.
Pros and Cons of ANZ Home Loans
Pros:
- Strong short‑term fixed options (5.39–5.49%)
- Reliable Big Four service & branches
- Transparent rate-locking features
- Full suite of loan features like redraw and offset
Cons:
- Variable index rates (6.74–6.94%) are above many competitors
- Lower discounts for high LVR
- Fixed segment limited to 1–5 years; higher beyond that
Frequently Asked Questions
1. Are ANZ’s rates competitive?
Their short‑term fixed rates are top-tier among Big Four, but variable rates may lag behind smaller lenders.
2. Can I lock in an ANZ rate?
Yes—90-day lock available, fee applies ($750/million lent) mozo.com.au+4news.com.au+4theaustralian.com.au+4mozo.com.aufinder.com.auanz.com.auanz.com.au+3anz.com.au+3anz.com.au+3.
3. How much does a 25 bps cut save?
For a $500k loan, it’s around $80–100/month brokerdaily.au.
4. What LVR is best?
≤ 80% for better pricing; >80% pays ~0.2% extra .
5. Fixed or variable?
Fixed provides predictability; variable offers flexibility to benefit from future rate cuts.
6. When will rates drop further?
ANZ forecasts two more RBA cuts in 2025, possibly by August yourmortgage.com.au+8savings.com.au+8theaustralian.com.au+8.
Conclusion
ANZ remains a strong contender, especially for short-term fixed home loans, thanks to competitive rates and sound lending features. While their variable rates may trail behind non-bank options, you can still secure savings through refinancing, LVR management, and smart rate-lock strategies—as long as you stay informed and proactive.