Aussie Bank drops fixed mortgage rates by 1%pa in price war

ANZ Banking Group (ANZ) has matched National Australia Bank's (NAB) cut to mortgage interest rates on fixed home loans, lowering the mortgage rates by up to 100 basis points.ANZ has dropped the mortgage interest rate on one and two year fixed home loans by 1.00 percentage point to 5.99 per cent for both terms, the bank said.Rates for all other terms have been reduced by at least 16 basis points.The reductions will take effect from Monday, November 24.The move follows NAB's cut to interest rates on fixed rate home loans which came into effect on November 10th.
Interest rates on one-year fixed rate mortgages from Australia's major banks now stand at 5.99 per cent at ANZ and NAB, 6.99 per cent at Westpac and 7.14 per cent at Commonwealth Bank of Australia.
ANZ is also reducing its variable business loan rates by between 40 and 50 basis points.This includes a 40 basis point cut to the Business Mortgage Loan (Index) to 9.07 per cent, and a 50 basis point cut to the Business Saver Loan (Index) to 8.57 per cent.