ANZ cuts rates in mixed news for customers
ANZ Bank has cut both home loan and deposit rates in the lead up to the Reserve Bank of Australia's first meeting of the year.
ANZ cut the variable home loan rate by 0.12 per cent for new owner occupiers paying principal and interest.
The rate is now at 3.12 per cent, the second lowest ongoing variable rate out of the big four banks according to RateCity.com.au.
ANZ also cut the base rate on its Online Saver account from 0.10 per cent to just 0.05 per cent, and cut the majority of its term deposit products by up to 0.10 per cent.
The move appears is ANZ doing "spring cleaning" ahead of the RBA's meeting on February 4, RateCity.com.au research director Sally Tindall said.
"ANZ's recalibration of their deposit rates ahead of the next Reserve Bank meeting suggests they are getting their house in order ahead of a potential cash rate cut," she said.
"What's disappointing is that while the home loan cuts are largely reserved for new customers, the savings cuts will hit everyone with an ANZ online saver account.
"With a new ongoing rate of 0.05 per cent, ANZ's online saver account is down there at the bottom of the barrel."
Ms Tindall said a person with $10,000 in one of those accounts would get less than 50 cents in interest per month once the introductory rate expires.
"That's not even enough for a litre of milk," she said.
"Today's home loan cuts are testament to the ongoing competition in the mortgage market."
Yesterday Westpac slashed its investor fixed rates by up to 0.50 per cent.
Ms Tindall expects others will follow in coming days.
NAB base variable rate: 3.09 per cent with a loan-to-value (LVR) of 80 per cent or less
ANZ Simplicity Plus: 3.12 per cent with an LVR of 80 per cent or less
Westpac Flexi First Option: 3.18 per cent with an LVR of 70 per cent or less
Commonwealth Bank Extra Home Loan: 3.22 per cent with an LVR of 70 per cent or less