ANZ cuts fixed mortgage rates
Relief is in sight for some borrowers, with the ANZ Bank cutting its fixed mortgage interest rates by as much as half a percentage point.
The bank said today that rates for fixed rate home loans and residential investment loans will fall across all terms by between 11 basis points and 50 basis points.
''These changes will enable ANZ to offer our customers some very competitive fixed rates,'' it said.
For example, its one-year fixed rate will fall by 11 basis points to 8.99%, per annum.
Its seven year fixed rate will fall by 50 basis points, also to 8.99%.
The decision by ANZ to cut its fixed rates - but not its variable rates - comes as financial markets factor in a likely cut in official interest rates next month.
Earlier today, ANZ managing director for mortgages Michael Rowland today a federal parliamentary committee hearing in Melbourne that there was no certainty the bank would pass on in full any cut by the Reserve Bank of Australia.
''We would like to cut those interest rates but we will have to assess what is happening to our funding costs at that time,'' Mr Rowland told the committee.
The House of Representatives Economics Committee is examining whether competition in the financial sector has been reduced following the global credit crunch.
The ANZ's move was prompted by a sharp reduction in the cost of funds that it borrowed on the short-term money market.
Mr Rowland told the hearing the cost of short-term funds had fallen dramatically in recent days.
''Those sort-term funding costs have moved from an average of 10 basis points over the official cash rate, to earlier this year to 100 points, (to) last week 60, (to) yesterday 20,'' Mr Rowland said.
Mr Rowland said the bank's funding mix comprised roughly one third deposits, one third from the short-term money market and the rest from long-term borrowings.
The bank's move on fixed-term mortgages followed data showing the popularity of fixed-rate home loans had halved since the start of the year, a sign that borrowers may be expecting an interest rate cut.
Australian Bureau of Statistics (ABS) data this week showed 11.7% of new mortgages approved in June were at a fixed rate, the lowest market share since October 2005.
That was a big fall from March when fixed-rate loans commanded 23.9% of all new housing finance commitments.
Fixed-rate loan numbers have fallen for three successive months, the ABS data showed even though the major banks had lifted their standard variable lending rates independently of the Reserve Bank of Australia.
Economists now expect the Reserve Bank of Australia will consider cutting the official cash rate, which has been at 7.25% since March, before the end of the year.
ANZ said its one-year fixed rate would be cut 11 basis points from 9.10% to 8.99%, its two-year fixed rate would be cut 35 basis points from 9.34% to 8.99% and its five-year fixed rate would fall 50 basis points from 9.49% to 8.99%.
AAP with Chris Zappone, BusinessDay
澳洲中文论坛热点
- 悉尼部份城铁将封闭一年,华人区受影响!只能乘巴士(组图)
- 据《逐日电讯报》报导,从明年年中开始,因为从Bankstown和Sydenham的城铁将因Metro South West革新名目而
- 联邦政客们具有多少房产?
- 据本月早些时分报导,绿党副首领、参议员Mehreen Faruqi已获准在Port Macquarie联系其房产并建造三栋投资联