ANZ cut fixed rate home loans for investors and owner-occupiers

ANZ have followed CBA by cutting their fixed rate home loans.

They've announced rate cuts of up to 0.86 per cent to fixed home and investment loan interest rates.

CBA cut their fixed home loans by up to 0.5 per cent last week.

ANZ’s two-year packaged fixed rate for owner occupier paying principal and interest is now the lowest rate in comparison website Canstar’s database at 2.68%.

Canstar's finance expert Steve Mickenbecker describes the market as "supercharged" as banks jockey to win back market share.

“ANZ is following hot on the heels of Commonwealth Bank reducing fixed rates", Mickenbecker noted.

"ANZ’s market share has lagged well behind in the post GFC period and the lender wants to reverse that trend.

“The biggest cuts are for investors borrowing with interest only repayments, up to a huge 0.86% for 4 and 5-year terms.

He says i

nvestors are the winners, with the two-year rate for principal and interest at 2.88%, only 0.20% ahead of the owner occupier rate.

“The investment cuts are slashing the higher margin banks applied to investment loans, both principal and interest and interest only, reversing the trend we saw when APRA clamped down on growth in these categories.

“Investment lending is now a competitive playground for the big banks.”