ANZ's Nuno Matos smokes on the First Nations pipe
The Portuguese Prince (who's worked in Peru and Mexico) is apparently very attuned to cultural sensitivities around Indigenous peoples. Both events were naturally marked by social media posts, their virtue signalled and enacted (#purpose #firstnations #banking).
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Daily Telegraph
15 minutes ago
- Daily Telegraph
Major bank slashes interest rates
One of the major banks has made a power move ahead of the next Reserve Bank meeting to decide the cash rate, introducing new offers to entice more mortgage applicants to fix their loans. ANZ this week announced it would be slashing 10-35 basis points off one to five-year fixed home loan rates, a move that has meant it offers the cheapest fixed rates among the 'big four'. It's come as lending data shows few customers are choosing to fix rates amid wide expectations of another cash rate cut in July, followed by subsequent cuts later this year. This means most of the homeowners on variable rates have the power to chase the best deals in the market by refinancing to different lenders. MORE: Homeowners told to brace for rate cut bombshell ANZ's cheapest fixed rates are now 5.29 per cent and 5.19 per cent for one-year and two-year fixed terms, respectively. The move has occurred after a range of smaller lenders earlier slashed their fixed rates to just under 5 per cent. This included Pacific Mortgage Group, which is offering 4.99 per cent for one-year fixed terms, while Easy Street is offering 4.95 per cent for two-year fixed loans, according to Mozo analysis. Variable rates for new customers currently average about 5.74 per cent. Mozo finance expert Rachel Wastell said ANZ's fixed rate offers were likely a 'strategic first-mover play'. 'ANZ is getting ahead of the curve to lock in borrowers who might be contemplating a fixed rate before the RBA acts,' she said. MORE: One in six unit projects now 'ghost' towers 'Inflation data has also shifted expectations and the market now sees rate cuts as more imminent, so ANZ could be capitalising on that shift before the RBA confirms direction. 'By slicing just enough to undercut the other majors, ANZ gets to look competitive without actually joining the below 5 per cent pack. So it could also be a positioning move, just as much as a pricing one.' Canstar data insights director Sally Tindall said ANZ was moving on the assumption more cash rate cuts were imminent. 'This move by ANZ consolidates its lead as the lowest-cost fixed rate lender out of the majors,' she said. 'The bank is factoring in the possibility of further cash rate cuts, which could be coming down the line as soon as next week.' Ms Tindall added that customers were rarely choosing fixed rates. 'ANZ could also be looking to shore up its loan book by locking in more customers on fixed rate deals,' she said. 'The bank's most recent half year results show that just 3 per cent of its residential mortgage book is on a fixed rate contract. 'This means the remaining 97 per cent on variable rates are free to move at any time without major penalties.' Ms Tindall said homeowners considering fixing their rates should keep some perspective. 'While ANZ's fixed rates are streaks ahead of the other big banks, particularly on shorter terms, they're still a far cry from the lowest fixed rates in town, with a total of 13 different lenders now offering at least one fixed rate under 5 per cent,' she said. 'If you're looking to lock in your rate, don't go aiming for one that starts with a 5 or a 6. You should be looking in the 4's.'
News.com.au
2 hours ago
- News.com.au
Major bank slashes interest rates
One of the major banks has made a power move ahead of the next Reserve Bank meeting to decide the cash rate, introducing new offers to entice more mortgage applicants to fix their loans. ANZ this week announced it would be slashing 10-35 basis points off one to five-year fixed home loan rates, a move that has meant it offers the cheapest fixed rates among the 'big four'. It's come as lending data shows few customers are choosing to fix rates amid wide expectations of another cash rate cut in July, followed by subsequent cuts later this year. This means most of the homeowners on variable rates have the power to chase the best deals in the market by refinancing to different lenders. ANZ's cheapest fixed rates are now 5.29 per cent and 5.19 per cent for one-year and two-year fixed terms, respectively. The move has occurred after a range of smaller lenders earlier slashed their fixed rates to just under 5 per cent. This included Pacific Mortgage Group, which is offering 4.99 per cent for one-year fixed terms, while Easy Street is offering 4.95 per cent for two-year fixed loans, according to Mozo analysis. Mozo finance expert Rachel Wastell said ANZ's fixed rate offers were likely a 'strategic first-mover play'. 'ANZ is getting ahead of the curve to lock in borrowers who might be contemplating a fixed rate before the RBA acts,' she said. 'Inflation data has also shifted expectations and the market now sees rate cuts as more imminent, so ANZ could be capitalising on that shift before the RBA confirms direction. 'By slicing just enough to undercut the other majors, ANZ gets to look competitive without actually joining the below 5 per cent pack. So it could also be a positioning move, just as much as a pricing one.' Canstar data insights director Sally Tindall said ANZ was moving on the assumption more cash rate cuts were imminent. 'This move by ANZ consolidates its lead as the lowest-cost fixed rate lender out of the majors,' she said. 'The bank is factoring in the possibility of further cash rate cuts, which could be coming down the line as soon as next week.' Ms Tindall added that customers were rarely choosing fixed rates. 'ANZ could also be looking to shore up its loan book by locking in more customers on fixed rate deals,' she said. 'The bank's most recent half year results show that just 3 per cent of its residential mortgage book is on a fixed rate contract. 'This means the remaining 97 per cent on variable rates are free to move at any time without major penalties.' Ms Tindall said homeowners considering fixing their rates should keep some perspective. 'While ANZ's fixed rates are streaks ahead of the other big banks, particularly on shorter terms, they're still a far cry from the lowest fixed rates in town, with a total of 13 different lenders now offering at least one fixed rate under 5 per cent,' she said. 'If you're looking to lock in your rate, don't go aiming for one that starts with a 5 or a 6. You should be looking in the 4's.'
News.com.au
9 hours ago
- News.com.au
Homeowners told to brace for interest rate cut bombshell from banks
Homeowners hoping for further interest rate relief may be disappointed – even if the Reserve Bank makes the landmark decision to cut the cash rate this month, mortgage analysts have warned. The review of previous periods of declining interest rates showed banks had a habit of being generous in passing on the first cut in a rate easing cycle but subsequent cuts were rarely passed on. This pattern was most noticeable during the early onset of the Covid pandemic in 2020, when the Reserve Bank cut the cash rate to a historic low of 0.1 per cent, plus the year prior. Mortgage comparison group Mozo revealed the experience of past cycles did not bode well for current homeowners hoping for their bank to deliver new savings over July. Mozo finance expert Rachel Wastell said history suggested many lenders would probably not pass on the next cut in full. 'Looking back historically at past cutting cycles, lenders are less likely to pass on subsequent cuts,' she said. She pointed to June 2019, when over half of lenders passed on the first full 25 basis point RBA cut in that cycle. Only 15 per cent did the same after the next cut a month later. Just 9 per cent of lenders passed on an additional cut that October. A similar trend played out during the pandemic. The first emergency cut in March 2020 was widely passed on — only 13 per cent of lenders Mozo tracked didn't pass it on in full. But the second cut was barely reflected in home loan rates, with ANZ the only major lender to pass on even part of the cut. The final cut in that cycle — 15 basis points in November 2020, took the cash rate to 0.10 per cent but banks showed even more restraint in passing that savings on, Ms Wastell said. Just under a quarter of lenders didn't pass the November 2020 cash rate cut on in full, and 43 per cent didn't pass it on at all. 'We've seen that banks tend to be generous early on, often with the first cut, but then start holding back as the cycle continues, particularly as they try to protect margins,' Ms Wastell said. Lenders have so far been fairly quick to pass on the two Reserve Bank cuts announced in February and May. Both cuts were broadly passed on in full by lenders, with Virgin Money the only exception in February. Virgin later relaunched its variable home loan range, introducing basic and offset options. 'Not one lender in May followed Virgin Money's playbook and, as of July, no lenders have publicly announced they are withholding the RBA rate cut. 'In fact, (all) of the lenders that Mozo tracks passed on the 25 basis point rate cut to variable rate home loans.' Ms Wastell added that there was a strong chance mortgage products would begin diverge if the Reserve Bank announced a new cut. 'If cuts continue, we may start to see a split in the pack,' she said. 'Borrowers can't afford to assume their bank will do the right thing, and borrowers should watch their lender like a hawk, especially if their rate starts with a six. 'There's no excuse for complacency. If your rate still starts with a six after two RBA cuts, it's time to move.' Mozo analysis also revealed that banks were very quick to pass cash rate cuts to savers but took significantly longer to reduce interest rates for mortgage holders. 'Another thing we're watching closely is savings rate movements. In both February and May, many savings account rates were trimmed before home loan rate cuts were fully passed on. 'That's a tactic we've seen before: lenders move early on savings (where there's less customer scrutiny), and wait a few days, or sometimes a week, to cut home loan variable rates. 'The further we go into a cutting cycle, the more important it is for borrowers and savers to watch their bank more closely.'
