ANZ and NAB cut their fixed rate home loans - time to ‘nab’ yourself a fixed rate discount?

By Ceyda Erem ·

And just like that, within the span of a week, all of the Big 4 banks have moved their fixed rate home loans.

This morning, ANZ and NAB cut some of their fixed rates by as much as 50 basis points, making their owner occupier, principal and interest 5 year packaged rate one of the most competitive rates on the market at 3.59%.

According to the Mozo database, the only providers that beat this rate are Greater Bank, Suncorp and Newcastle Permanent.

Fixed rate changes, Principal & Interest loans - March 2018

1 year2 years3 years4 years5 years
Owner P&I4.24%4.14%4.14% (-0.10)4.64%4.74%
Investor P&I4.44% (-0.20)4.34% (-0.20)4.44% (-0.20)4.94% (-0.10)4.94% (-0.20)
Owner P&I3.99%3.98%4.04%4.69%4.19% (-0.50)
Investor P&I4.39%4.19% (-0.30)4.19% (-0.35)4.89%4.89%

It seems that ANZ and NAB had similar intentions with their rates, as both banks have made the same cuts for both their standard and packaged rates across all their loan terms, with the exception of NAB’s 4 year rates.  

Just last Friday, CommBank dropped fixed rates for both owner occupiers and investors, while Westpac bucked the trend on Wednesday and hiked their fixed rates.

RELATED: CommBank drops fixed rate home loans with investors snagging the biggest discount

“The competition between the Big 4 banks is really starting to heat up. We’ve now seen three out of the Big 4 offering more competitive rates for borrowers looking for a shorter fixed rate term,” said Mozo Data Manager, Peter Marshall.

However, all good things must come to an end and according to Marshall, low big bank fixed rates are no exception. With experts predicting that the 10-year US Treasury bond could hit 3% and potentially impact fixed interest rates in Australia, there’s a good chance fixed rates will rise as well.

“There’s a lot of uncertainty in the global economy right now and it’s likely that it could bring these fixed rate deals to a close,” Marshall said.

“If you are looking for a little more certainty in your loan, there are plenty of sharp rates to consider right now so it could be a great time to fix all or part of your loan.”

Thinking of locking in your rate for a few years? Our home loan comparison tool compares some of the top fixed rate deals around, giving you the financial security you need.

Ceyda Erem
Ceyda Erem
Money writer

Ceyda Erem is Mozo’s authority on Energy, as well as having broader expertise as a personal finance writer. She loves to put her researching and writing talents into stories that help our readers to make more informed financial choices, whether that’s about finding the best energy deal or writing about the latest sneaky bank tricks. Ceyda has a Bachelor of Arts (major in writing) from Macquarie University.