Lenders slash mortgage rates for new customers

From The Adviser comes news that ANZ and Macquarie have slashed their mortgage rates by up to 60 basis points:

For its Breakfree discount package, ANZ has announced the following rate changes for owner-occupiers:

  • three-year owner-occupied principal and interest rates have been cut by 30bps to 3.69 per cent (4.94 per cent comparison rate)
  • five-year owner-occupied principal and interest rates have been cut by 20bps to 3.99 per cent (4.89 per cent comparison rate)
  • two-year owner-occupied interest-only rates have been cut by 20bps to 4.29 per cent (5.13 per cent comparison rate)
  • three-year owner-occupied interest-only rates have been cut by 60bps to 3.99 per cent (5.00 per cent comparison rate)
  • five-year owner-occupied interest-only rates have been cut by 59bps to 4.50 per cent (5.07 per cent comparison rate)

ANZ has also made the following changes for Breakfree investment loans:

  • two-year investment principal and interest rates have been cut by 6bps to 3.89 per cent (5.54 per cent comparison rate)
  • three-year investment principal and interest rates have been cut by 20bps to 3.99 per cent (5.44 per cent comparison rate)
  • five-year investment principal and interest rates have been cut by 26bps to 4.19 per cent (5.31 per cent comparison rate)
  • three-year investment interest-only rates have been cut by 30bps to 4.19 per cent (5.48 per cent comparison rate)
  • five-year investment interest-only rates have been cut by 4bps to 4.95 per cent (5.60 per cent comparison rate)

Meanwhile, Macquarie Bank has reduced variable and fixed mortgage rates by up to 51bps across its Basic and Offset packages.

The non-major’s variable rate changes are as follows:

  • cuts of between 7-21bps for variable home loans for owner-occupiers paying principal and interest and interest only, excluding loans with an LVR of less than 95 per cent
  • cuts of between 11-51bps for variable home loans for investors paying principal and interest and interest only, excluding loans with an LVR of less than 90 per cent

Macquarie’s fixed rate changes include:

  • cuts of between 10-20bps for one, two and three-year fixed rates for owner-occupiers paying principal and interest
  • a cut of 10bps for one-year fixed home loans for owner-occupiers paying interest only
  • a cut of 10bps for one-year fixed home loans for investors paying principal and interest
  • cuts of between 10-15bps for one, two and three-year fixed home loans for investors paying interest only

ANZ and Macquarie are among several lenders that have reduced rates across their fixed rate home loans over the past few months.

Canstar’s Steve Mickenbecker claims that the banks are front-running pending official rate cuts from the RBA which makes sense.

Comments

  1. Getting desperate, trying to drag the last people unencumbered with debt off the sidelines.

    Are there enough unmortgaged people with sufficient income out there to soak up supply, especially in the $1m plus range?

    I don’t think so. Prices to keep dropping. The gov, banks and RBA beginning to look hysterical. Hardly confidence building. If only the captured media would report the truth.

    • Oh god, don’t you get it? Even after all these years?

      There’s not a limited supply of people standing on the sidelines waiting. The supply of people is always growing.

      So even if you somehow ran out of these creditworthy bods say 6 months ago, by now you have a fresh supply of new borrowers.

      Misunderstanding the dynamic is why you keep getting surprised and disappointed.

      • Even StevenMEMBER

        +1

        For a time, dropping confidence / willingness to pay can cause the market to fall, but at some point (given several hundred thousand bods being added each year to the demand pool), prices will stabilise. BUT… it might not save it from heading down a fair bit more in the short to medium term.

      • Arthur Schopenhauer

        +100 Peachy.
        So many people confuse access to credit with wealth. It’s the ‘narrative’ of our time. Borrow and become rich.
        Welcome to Straya!

      • Jumping jack flash

        Yes more people means more debt slaves.
        Here, have some more debt.

        That RC into banking was worth every dollar…

        Wonder how many IPs all those involved were able to purchase as a result of that gravy train to nowhere?

    • Plus this change means less stress both owners and investors alike. Assuming same repayments it means lower balances for older loans over time. Less distress also helps avoid panic selling and the like on the margin. As these borrowers gain room on their balance sheet it only takes a sentiment change to exercise this room again.

    • Immigration policy that will require new immigrants to turn up with cash and buy a house within 3 weeks of entering Oz. Nothing else will save the bubble.
      If existing population loads up on more debt people will fail to service their loans. Lot of them already struggle. Plus, spending on anything and everything will go further down. Have to pay those mega mortgages.

    • Nope, they’re trying to churn business in and get high-quality borrowers with low LVR, low risk of default. It’s a desperate attempt to keep the wheels of bonus greased and capture market share in a shrinking market. All about reducing bank balance sheet risk

  2. BBSW below 2% now. Unwinding some of the hikes they placed in before the rise.
    Who care about the RBA

  3. Jumping jack flash

    Yes just what we need, more debt.
    This’ll do wonders for immigration, wage theft and cost of living…

    **Gouging intensifies**