ANZ has announced it too will reduce interest rates for variable rate mortgages by 0.20%pa following its December interest rate review.
Effective December 21, 2012, ANZ’s new standard variable mortgage rate will be 6.40%pa.
ANZ CEO Australia Philip Chronican says the major bank assessed a “wide range” of factors in reaching their final decision, including the impact of the lower Cash Rate on domestic funding sources, continuing competition for deposits, the international funding environment and their competitive position.
“We believe the decision to lower our variable mortgage rate by 0.20%pa is the right one for our customers, providing a competitive mortgage rate while also recognising the significant uncertainty associated with the fiscal situation in the United States and the political situation in Europe.”
ANZ says variable rates for small business lending would also decrease by 0.20%pa effective December 21.
ANZ will not undertake an interest rate review in January given the limited market activity over the next three to four weeks. Their next review is scheduled for Friday, February 8, 2013.