NAB’s lowest advertised fixed rate now sits at 5.19% for a two-year term for owner-occupiers paying principal and interest. The bank is now tied with ANZ for the lowest one- and two-year fixed rates across the majors.
“NAB has come out swinging ahead of the RBA meeting, cutting fixed rates by up to 0.25 percentage points and undercutting its big bank rivals on a range of terms. Its two-year rate at 5.19% now sets the pace among the big four,” said Canstar’s Sally Tindall (pictured left).
Canstar data shows nearly 20 lenders have cut at least one fixed rate in the past month, as expectations build for another cash rate cut – potentially as early as next Tuesday.
“While fixed rates aren’t the flavour of the month for most borrowers, cuts like these are a sign the banks are bracing for the RBA to move again – most likely on Tuesday,” Tindall said.
In a surprise move, ANZ has increased the variable rate on its ANZ Plus home loan for new customers by 0.16 percentage points, now at 5.75% (comparison rate 5.76%). The change does not affect existing customers on this product.
The bank also ended its $2,000 cashback offer for refinancers on the ANZ Plus loan from Aug. 1, though the cashback remains available across other ANZ home loans.
This marks ANZ’s first variable rate hike for new customers since December 2023 – a move against the grain in a market where many lenders are trimming rates.
“On the flip side, ANZ’s hike to its lowest variable rate is a reminder some banks are still looking to protect margins,” Tindall said. “It’s an unusual move just days out from a Board meeting that could deliver a cut, but it shows how some banks don’t follow the tide. Let’s just hope it's not contagious.”
“While we expect all four big banks to step up and do the right thing by passing on the next cash rate cut in full to their variable customers, if you’ve got a mortgage, it's worth keeping an eye on what your bank announces when the RBA does finally pull the trigger.”
A total of 17 lenders now offer at least one fixed rate under 5%, including Macquarie, Greater Bank and Bank of Queensland. One lender has even broken the 5% barrier for variable mortgages, according to Canstar.
“Already we’ve seen one lender break the 5% barrier for variable rate mortgages. Let’s hope others follow suit on the back of the next RBA cut,” Tindall said.
“We’d urge lenders to remember that many households are still under intense financial pressure. After 13 RBA rate hikes, four of which were doubles, the third cash rate cut in the cycle is not the time to baulk.”
In a separate announcement, ANZ rolled out new home loan policy changes designed to make borrowing easier for self-employed Australians and small business owners.
The new policies are in direct response to borrower feedback around irregular income and the challenges of securing home loan approval.
Key changes include:
“We’ve listened to our customers and are proud to lead the way in inclusive lending,” said Paul Presland (pictured right), ANZ managing director of SME, Australia commercial. “Small business owners, freelancers, entrepreneurs, and sole traders deserve the same access to home ownership as any other worker.”
“These changes are about cutting red tape and recognising the value small businesses bring to our economy. We know they are already juggling enough – banking shouldn’t be another pain point.”
The bank said the updates form part of a broader strategy to simplify banking for self-employed Australians and continue its leadership in business banking.
“These updates are part of ANZ’s broader strategy to support Australian businesses to start, run and grow – both personally and professionally,” Presland said. “No two small businesses are the same, and by tailoring our approach we’re not just simplifying the process, we're ensuring Australian small businesses continue to thrive.”
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