Just before the weekend, two majors adjusted their fixed home loan offers in opposite directions, providing insight into where the battle for new customers is taking place.
While NAB decreased its fixed rates by between 0.20% and 0.60% for investors paying interest only, ANZ increased its 2-year fixed rates by +0.10% for owner occupiers paying P&I.
“Home loan interest rates have been decreasing for some time now, but ANZ is bucking the trend today by increasing its lowest fixed rate offer from 2.19% up to 2.29%,” explained Canstar group executive of financial services, Steve Mickenbecker.
“The rate increase looks more a fine-tuning than anything else, moving ANZ into line with the 2.29% lowest fixed rate offers at its major competitors.”
However, the reductions across NAB's investment loans brings them down to a figure competitive with its P&I rate.
“NAB’s interest only investment package rate for 3 years fixed is down to 2.69%, only 0.10% above the principal and interest rate,” said Mickenbecker.
“The move is quite a repositioning, with NAB’s 3 year interest only rate for investors only 0.40% above the 2.29% for owner occupiers making principal and interest repayments.
“The battle for investment lending is well and truly on.”
In mid-May, Reduce Home Loans also increased its fixed rates by 0.10% to 2.19%. By doing so, it lost the title of lender with the lowest fixed rate offer in the market; now, Freedom Lend and ING share the title with their 2.09% 2-year fixed rate.
“Rate cuts are the wake up call for anyone who hasn’t chased a better deal and snatched up the amazingly low rates that are around and the possible savings,” Mickenbecker concluded.