ANZ has slashed rates by more than the Reserve Bank to the lowest level among the majors.
In a bid to dethrone National Australia Bank as the cheapest in the market, ANZ has announced it will cut its mortgage rate by 0.27 per cent.
Both NAB and ANZ are offering a standard variable rate on home loans of 6.13 per cent.
ANZ Australian chief executive Philip Chronican said this is good news for customers with the reduction in funding pressures clearing the way for the bigger than expected cut.
“While competition for deposits remains strong, our overall funding cost position has allowed us to reduce variable mortgages by 0.27 per cent,” he said.
“This month we reviewed a range of factors including the Reserve Bank’s decision to decrease the official cash this week, our competitive position and a recent easing in the cost of wholesale funding.”
The ANZ decision is effective from next Friday May 17.
All of the Big Four Banks have passed this week’s RBA cut on in full.
Until the ANZ announcement NAB’s mortgage rate was the lowest offering among the majors in the market for 46 consecutive months.
Bank Cut Rate
ANZ -0.27% 6.13%
CBA -0.25% 6.15%
NAB -0.25% 6.13%
Westpac -0.25% 6.26%