Home loan rate changes

Rate decision – 20 March 2020

ANZ announced today it will decrease variable interest home loan rates in Australia. Effective 27 March 2020, ANZ will reduce variable interest rates for home, residential investment and line of credit loans by 0.15% p.a. ANZ has also announced changes to a fixed rate at the time of this statement, for more information please see ANZ’s media release.

How will this affect my repayments?

To help customers get ahead of their repayments, ANZ will not automatically reduce the minimum repayment you make on your loan. This means your actual repayments will stay the same but the minimum repayment you are required to pay reduces, which results in you paying off more of the loan principal with each repayment.

However, if you'd like to change your repayment amount, you can do so after 27 March 2020. This can be done online through ANZ internet banking or by contacting ANZ. If you would like to see an estimate of what you could reduce your repayments to, please check the Repayments Calculator.

Below is a summary of the changes that will be effective on 27 March 2020.

Principal and interest repayments

Interest only repayments

Line of credit changes

Products no longer available for sale

*Comparison Rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. These rates are for secured loans only.

WARNING: This Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

For interest only variable loans, the comparison rates are based on an initial 5 year interest only term.

How will ANZ communicate these changes to customers?

Current interest rates are available on anz.com and ANZ advertises any changes to its rates in a national newspaper. Depending on your type of loan, you might also be notified of changes in an account statement or letter.

What criteria does ANZ use when making decisions on interest rates? 

We regularly review interest rates to ensure they reflect current market conditions.  Our review includes factors such as: 

• The cost of wholesale funding
• Our competitive positioning
• The impact of economic conditions on our customers
• Regulatory requirements
• Ensuring fair rates for depositors
• Overall business performance

What if I want to change my repayment amount?

If you wish to change your loan repayments yourself, you can do so after 27 March 2020 as follows: 

How can I try to save interest on my home loan?

The following options may assist:

• Change your repayment arrangements so you make repayments more frequently (e.g. from monthly to weekly).
• If you have an eligible loan (such as an ANZ Standard Variable loan or a one year ANZ Fixed loan), you could consider linking an offset account to it. The more money you have in your linked offset account, the less interest you'll need to pay on your home loan.

You should carefully consider these options and your personal circumstances before deciding whether to make any changes to your repayment arrangements.

I would like more information. Who can I speak to?

If you would like more information, visit any ANZ Branch, call us on 13 13 14 or refer to our media centre page or interest rates page, which will be updated on 27 March 2020 to reflect these changes.

What can I do if I'm having difficulty making my repayments? 

Please contact us so we can review your situation and explore the available options. More information can be found at our dedicated Hardship online site on anz.com.