ANZ will drop its fixed interest mortgage rates for new customers

What can only be seen as good news for those people that are Migrating to Australia ANZ will drop its fixed interest mortgage rates for new customers by up to 0.2 percentage points from Monday. "In light of market conditions continuing to ease over the past couple of weeks, ANZ will lower fixed rate mortgages for new customers from Monday, 15 September,'' a spokeswoman said.

Fixed interest home and residential investment loan rates will decline across all terms by between 0.1 per cent and 0.2 per cent, the bank said. Its one-year fixed mortgage rate will fall to 8.39 per cent, from 8.49 per cent.

This is the bank's third cut to its fixed rate mortgages since August 8, with interest rates falling by up to 1 per cent over the past five weeks, the bank said. Five weeks ago the one-year rate stood at 9.1 per cent. Fixed rates for Australian home loan and residential investment loan across all other terms will be reduced by 0.2 percentage points rom Monday.

ANZ's five year fixed rate mortgage is the most popular, the spokeswoman said. Interest rates applying to ANZ's credit cards are still under review, the spokeswoman said. ANZ's move follows comments made by Reserve Bank of Australia Governor Glenn Stevens on Monday relating to the decoupling of movements in mortgage interest rates from movements in the official cash rate.

"There isn't any law that says banks can only adjust interest rates when we (the RBA) do,'' he told a House of Representatives Economics Committee hearing in Melbourne.

Australia's five biggest banks have cut their fixed rate home loans over the past six weeks, with the most recent being St George Bank on September 1. Rates for one-year fixed home loans today stand at 8.49 per cent at ANZ, NAB and Westpac, 8.79 per cent at St George and 9.03 per cent at Commonwealth Bank.

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