ANZ joins fellow major banks in cutting variable home loan rates

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ANZ has become the latest big four bank to reduce a variable mortgage rate in recent weeks, announcing a 23 basis point cut to one of its basic home loans this morning.

The major lender cut rates on its Simplicity PLUS loan by 23bp for new owner-occupier customers with a loan-to-value ratio (LVR) up to 80%, which means the lowest variable rate on offer to borrowers in that situation is now 2.49% p.a. (2.53% p.a. comparison rate*).

In addition to the rate change, ANZ also introduced a new rate tier on the Simplicity PLUS Loan for lower-risk borrowers. Owner-occupiers with an LVR under 70% will now be able to access rates as low as 2.29% p.a. (2.33% p.a. comparison rate*), which is the lowest variable rate currently on offer from the bank.

This is the first time that ANZ has lowered rates on its Simplicity PLUS loan (which has typically been the lowest-rate mortgage it offers) in over a year, with the move coming fresh on the heels of similar cuts from its major bank competitors.

Both CBA and NAB reduced rates on their respective basic home loan products last month, while Westpac did the same in late August. As a result, here are the lowest variable home loan rates currently on offer from the big four:

Big four lowest ongoing variable rates (owner occupier, <80% LVR) - November 8, 2021

LoanVariable rate
NABBase Variable Rate Home Loan2.29% p.a. (2.33% p.a. comparison rate*)
CBAExtra Home Loan2.39% p.a. (2.40% p.a. comparison rate*)
ANZSimplicity PLUS2.49% p.a. (2.53% p.a. comparison rate*)
WestpacFlexi First Option Home Loan (2 Year Intro Rate)2.59% p.a. (2.52% p.a. comparison rate*)

In terms of the wider market, the big four are continuing to lag behind many other lenders though - at least, that’s the case when it comes to variable mortgage rates.

As of November 8, 26 lenders being tracked in the Mozo database are currently advertising at least one home loan with a headline variable rate below 2.20% and, as the table below shows, a handful are even offering rates below 2.00%.

Lowest variable rates (owner occupier, <80% LVR) - Mozo database, November 8, 2021

LoanVariable rate
Reduce Home LoansSuper Saver1.88% p.a. (1.97% p.a. comparison rate*)
Tic:TocVariable Home Loan1.89% p.a. (1.90% p.a. comparison rate*)
Police Credit UnionBetter Home Loan1.89% p.a. (1.93% p.a. comparison rate*)
Gateway BankGreen Plus Home Loan (Premium Package)1.89% p.a. (2.24% p.a. comparison rate*)
Pacific Mortgage GroupStandard Variable 1.94% p.a. (1.94% p.a. comparison rate*)

Not all home loan rates are trending down though.

Fixed rates - particularly on longer terms - are edging higher. Since the start of October, 73 lenders being tracked in the Mozo database have increased a 3, 4 and 5-year fixed rate compared to just five that have made cuts. 

The recent increases to longer-term fixed rates likely reflects an expectation from lenders that interest rates will start to rise in the next few years. But in the meantime, as Mozo Banking Expert Peter Marshall explains, lenders can still offer sharp variable rates and short-term fixed rates without hurting their profit margins. 

“If a borrower goes onto a low variable rate right now, their lender will be able to hike it anytime they want - especially when rates do eventually go up.” 

“As for one-year fixed rates - which are still very competitive - lenders are going to be fine to say, ‘okay, we’ll give you this rate for one year’, but they’re not prepared to give those great discounted rates for more than one year now.”

RELATED: Westpac hikes fixed home loan rates, RBA poised to move sooner than planned

Ready to grab a competitive home loan offer while interest rates are still relatively low? Start comparing today by heading over to Mozo’s dedicated home loan comparison table, or check out some of the great variable rate offers in the table below.

Last updated 20 April 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes
  • Promoted

    Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • 2-Year Discounted - Simple Home Loan Variable

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable for 24 months and then 5.74% p.a.
    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
  • Discounted Complete Package Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable for 24 months and then 5.89% p.a.
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • 100% offset account
    • Make additional repayments at any time
    • Get a fee-free credit card (T&Cs apply)
  • Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.70 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Offset and non-offset options for flexible payments
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)
  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Simple Home Loan Variable

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • No application, ongoing or monthly fees
    • Make additional repayments at any time
    • Access your money via internet banking at any time
  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.77 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • No ongoing annual fees
    • Pre-approval valid for 3 months
  • Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes
Showing 8 results from 415 home loans. Use the filters to see more

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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