ANZ has cut interest rates on its variable-rate home loan cementing its lead as the lowest-rate major bank for mortgage holders. The move follows similar rate cuts from Commonwealth Bank and NAB, despite the Reserve Bank of Australia (RBA) keeping the cash rate on hold for a year.

ANZ has cut new customer variable rates on its Plus and Simplicity Plus home loans by up to 0.15 per cent today. Like with the cuts from the other major banks, these rate reductions do not apply to existing customers.

ANZ continues to offer the lowest advertised variable rate of the majors at 6.09 per cent rate. It is also the only big bank to continue to offer cashback with up to $2,000 for refinancers and $3,000 for first-home buyers.

RELATED

• Westpac's devastating interest rate cut blow as 2025 prediction pushed back again

• FIFO mining warning after 'diversity hire' blow up: 'Men overlooked'

• ATO delivers $900 million superannuation retirement boost for thousands of workers: ‘Ramped up’

Canstar data insights director Sally Tindall said ANZ’s cuts weren’t sizeable but they were "significant".

“This is the third big bank to have sliced new customer variable rates in the last three months despite no move to the cash rate. This is confirmation the big banks are still fiercely competitive,” she said.

“ANZ has consolidated its position as the lowest-rate big bank lender, with the most competitive variable, 2-year, 3-year and 4-year rates out of the majors.”

Are you a mortgage holder waiting for interest rate relief? Contact tamika.seeto@yahooinc.com

CBA cut its new customer variable rates by up to 15 per cent in August, while NAB cut rates by up to 0.40 per cent last week.

CBA’s lowest variable rate is 6.15 per cent, while NAB and Westpac’s lowest is 6.44 per cent with Westpac’s only applying for two years before increasing by 0.40 per cent.

Since November, Canstar found that 12 lenders had cut at least one variable rate while five had hiked at least one. That’s despite banks pushing back their expectation of the timing for the first RBA rate cut.

Tindall encouraged customers to use the market competition to their advantage.

“If you’re an existing ANZ customer, know the rate cut won’t be automatically applied to your loan, but there’s no harm ringing up the bank and asking for it to be,” she said.

“After all, if you’re a loyal customer, why should you be the one on a higher rate?”

When do the Big Four banks think interest rates will drop?

Westpac has joined NAB in pushing back its forecast for the first RBA rate cut. Both banks now think it will happen in May next year.