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.

Compare variable rate home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a.
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.19% p.a.
    2.19% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Details
  • placeholder
    Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.14% p.a.
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

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    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <80%

    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

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    Details

* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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