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One of the big four banks was showing on databases as having hiked their home loans rates at the same time as another dropped theirs.
One of Australia’s big four banks has quietly increased its home loan interest rates in a shock move, going against the grain just as another Big Four bank dropped theirs.
ANZ’s digital bank – ANZ Plus – which began offering home loans almost two years ago – emerged Thursday morning with a 0.16 percentage point rise in interest rates on comparison site Canstar’s database.
The increase in interest rates goes against the market trend, given almost 20 banks have cut at least one fixed home loan rate in the past month with most pricing the possibility of another cash rate cut as early as Tuesday.
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Canstar.com.au’s data insights director, Sally Tindall labelled the ANZ Plus hike to its lowest variable rate as “a reminder some banks are still looking to protect margins”.
“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.”
She said ANZ’s decision to hike its lowest variable rate when other banks are heading in the opposite direction will raise eyebrows.
ANZ Plus is showing a 0.16pp hike for both residential and investments variable home loan interest rates, rising from 5.59 per cent to 5.75 per cent per annum variable rate for new owner-occupier loans and up from 5.89pp to 6.05 per cent variable for investment properties.
The shock move has raised concern given ANZ Plus’ shift into home loans in 2023 was touted by former ANZ CEO Shayne Elliot as the bank’s future dominant distribution channel for home loans.
An ANZ spokesperson said “our change today is specific to our ANZ Plus variable home loan, and applies only to new customers, not the rate held by existing customers.”
“Other ANZ home loan rates have not changed. ANZ considers a range of factors when setting home loan rates.”
Homebuyers are being urged to shop around for the best mortgage deals as rates drop.
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Ms Tindall said “the bank has taken the carrots off the table for its ANZ Plus mortgage. Removing the cashback and raising the rate on this digital-only home loan suggests the bank is shifting back to its core brand.”
“However, the bank’s strategy of upping its sharpest rates at a time when there’s expected to be intense interest in refinancing on the back of a potential RBA cut is a curious one.”
“Importantly, existing ANZ Plus customers are not impacted by this latest hike, however, anyone who was hoping to get this mortgage in the weeks ahead might be miffed at the move.”
“While ANZ’s previous rate of 5.59 per cent was relatively competitive, owner-occupiers looking for a new mortgage should know there’s dozens of lenders offering far more attractive rates.”
Currently on the Canstar database there are around 35 lenders offering at least one variable rate under 5.50 per cent, with one lender already under the 5 per cent barrier at 4.99 per cent.
There are also 17 lenders with at least one fixed rate under 5 per cent, including from Macquarie, Greater Bank and Bank of Queensland.
Canstar Data Insights director Sally Tindall.
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The move is a sharp contrast to another big four bank National Australia Bank, which Canstar found was now among the growing list of lenders cutting fixed home loan rates by up to 0.25 percentage points.
On Thursday it put in a 0.25pp cut in tailored investment home loans fixed for one to two years, and a 0.1 per cent fall for those fixed for three and more years; as well as a residential fixed home loan rate cut of 0.1 points for interest only and 0.25pp for principal and interest.
Ms Tindall said “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 per cent now sets the pace among the big four.”
“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.”
Investor loans are matching falls in residential loans. Picture: Alan Barber
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“CBA and Westpac are now clearly leading the big bank pack when it comes to variable rates, with a reasonably competitive 5.59 per cent. This could drop down to 5.34 per cent on the back of an RBA cut.”
“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.”
Ms Tindall said “after 13 RBA rate hikes, four of which were doubles, the third cash rate cut in the cycle is not the time to baulk”.
“Already we’ve seen one lender break the 5 per cent barrier for variable rate mortgages. Let’s hope others follow suit on the back of the next RBA cut.”
The Reserve Bank is widely expected to cut the official cash rate at its Tuesday monetary policy meeting, and has already cut interest rates twice in 2025, dropping from 4.35pc to 3.85pc.
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