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ANZ Drops Rates, Matches Westpac

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The competition for home loan business continues with ANZ the latest lender to drop its variable rate. The bank dropped its rate by 0.2% for new customers, depending on the size of their deposit.

Customers with a 30% deposit will pay 2.19% interest, while those with a 20% deposit will pay 2.29% interest.

RateCity research director Sally Tindall says the move by ANZ means it had now matched Westpac in having the lowest variable rate among the big banks. “Fixed rates might be on the rise, but competition in the variable rate market is still alive and kicking,” she says.

RateCity analysis found there are 72 variable rates of less than 2%. The competitive rates are mostly on offer for new customers, although Athena this week dropped its rates for new and existing customers. Reduce Home Loans is offering the lowest variable rate this week of 1.77% on a 20% deposit.

Some analysts are tipping an interest rate rise this year despite the RBA repeatedly saying it isn’t likely to lift the official interest rate until 2024.

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