ANZ Home Loan Rates 2025: Current Rates & Comparison

Few things affect your monthly budget quite like a home loan rate. Whether you’re buying your first place or refinancing an existing mortgage, knowing what ANZ is offering right now — and how those rates compare between Australia and New Zealand — can save you thousands of dollars a year.

ANZ Australia variable (LVR ≤60%): 6.39% p.a. ·
ANZ New Zealand 1‑year fixed special: 4.79% p.a. ·
US 30‑year fixed average: ~7.0% p.a. ·
Forecast rate drop target: 5% by late 2025 ·
Monthly payment on $400k at 7%: $2,661

Current rates reveal a striking gap between the two markets, as shown in the table below.

The pattern: Australian borrowers pay a premium over New Zealand borrowers, largely reflecting different central-bank cycles.

What is the ANZ current home loan rate?

Current ANZ Australia home loan rates by LVR

• Variable rate for LVR ≤60% (owner‑occupier, P&I): 6.39% p.a. (ANZ Australia – official rate page)
• 2‑year fixed feature rate: 6.29% p.a. (comparison rate 7.05% p.a.) (Finder.com.au – ANZ loan comparison)
• ANZ Plus Home Loan variable: 6.25% p.a. (comparison rate 6.26% p.a.) (Finder.com.au – ANZ Plus variable)
• Standard Variable Home Loan index rate (after 15 May 2026 increase): 8.64% p.a. (ANZ rate changes page)

Current ANZ New Zealand home loan rates by term

• 6‑month fixed special: 4.69% p.a.
• 1‑year fixed special: 4.79% p.a.
• 2‑year fixed standard: 6.09% p.a.

Source: ANZ New Zealand – home loan rates

The implication: borrowers need to watch both the headline rate and the comparison rate, which includes fees, to understand true cost.

What is the difference between fixed-rate and variable-rate?

Definition of variable rate

A variable home loan rate moves with the lender’s standard variable rate, which itself follows the central bank’s cash rate. ANZ’s variable rates adjust automatically — you’ll see the change reflected in your next monthly payment. According to ANZ official rate page, variable rates are available for both principal‑and‑interest and interest‑only repayments, and they differ by loan purpose (owner‑occupier vs investment property).

Definition of fixed rate

A fixed rate locks in an interest rate for a chosen term — commonly 1, 2, 3, 5, or even 10 years. ANZ offers fixed-rate home loans in Australia and New Zealand with terms ranging from six months to five years. As ANZ’s rate sheet shows, a 2‑year fixed feature rate in Australia stands at 6.29% p.a., giving borrowers payment certainty over that period. ANZ home loan rates page notes that fixed rates protect you from rate rises but can incur break‑cost penalties if you pay out early.

Three rate types, one critical trade‑off: flexibility vs certainty.

The catch: variable rates give you freedom to make extra payments without penalty — handy if you expect your income to grow. Fixed rates lock in your cost of borrowing, ideal when you’re stretching your budget and can’t absorb a rate hike. Neither is universally better; the right choice depends on your cashflow stability and rate outlook.

How many years should I fix my mortgage for?

Factors to consider for fixing term

• Your time horizon: If you plan to sell or refinance within two years, a short fixed term avoids hefty break costs.
• Rate outlook: If you believe rates will drop, a variable or short fixed term lets you benefit sooner.
• Cash flow buffer: A longer fixed term (3–5 years) gives you a predictable payment schedule if you have a tight budget.

Pros and cons of 2, 3, 5, and 10‑year fixed terms

The pattern: shorter terms trade higher uncertainty for lower potential cost; longer terms buy certainty at a premium. As ANZ home loan rates page clarifies, the fixed rate you lock in is a bet on where the variable rate will be during that period. If you’re wrong, you pay — either in higher interest or in break costs.

Are interest rates expected to go down to 5%?

Current rate forecasts from major banks

Multiple economic forecasts suggest that if inflation continues to moderate, central banks in Australia and New Zealand could cut the cash rate through 2025, pushing variable home loan rates toward the 5% mark by late 2025. According to Bankrate mortgage rate forecast, the US 30‑year fixed may settle near 5.5% by end‑2025, while Australian economists at several tier‑1 banks see the RBA cash rate falling to 3.25% by early 2026, which would imply variable rates around 5.5–6%.

However, as ANZ’s own rate‑change history demonstrates — a 0.25 percentage point increase to variable rates effective 15 May 2026 (ANZ rate changes) — the path is not guaranteed. ANZ’s standard variable index rate jumped to 8.64% after that rise, a reminder that central banks can pivot quickly if inflation reaccelerates.

Historical context of 5% rates

During the record‑low period of 2021‑2022, home loan rates dipped below 3% in Australia and New Zealand. Those conditions were artificial, driven by pandemic‑era quantitative easing. Returning to 5% would still be historically normal — the long‑term average for variable rates in Australia is around 6‑7%. A drop to 5% would represent a meaningful reprieve but not a return to the COVID‑era trough.

The catch: even if central banks cut, lenders may not pass on the full reduction. ANZ’s index rate at 8.64% includes margins above the cash rate. Borrowers expecting sub‑5% variable rates in Australia are likely to be disappointed in 2025‑2026, though New Zealand’s special fixed rates already flirt with 4.69%.

Which bank gives the lowest home loan rate?

Comparison of major bank rates in Australia

Based on current advertised rates, ANZ’s variable rate of 6.39% (LVR ≤60%) is competitive but not the absolute lowest. Online lenders and smaller institutions often undercut the Big Four. For example, the ANZ Plus Home Loan variable at 6.25% (from Finder.com.au – ANZ Plus comparison) is slightly cheaper than the standard variable. Meanwhile, Commonwealth Bank, Westpac, and NAB offer similar ranges, typically 6.30%‑6.60% for low‑LVR variable loans. Fixed‑rate specials vary — ANZ’s 2‑year fixed at 6.29% is in the middle of the pack.

Comparison of major bank rates in New Zealand

In New Zealand, ANZ’s 1‑year fixed special at 4.79% undercuts many rivals. ASB’s equivalent was ~5.09% and BNZ’s ~4.89% as of mid‑2025. The table below highlights the spread across a few products.

Three products, one pattern: the lowest rates come from short‑term specials, and comparison rates (which include fees) are often higher than the headline rate. For those interested in comparing bank offerings, the Migliori banche italiane classifica provides a useful overview. Migliori banche italiane classifica

What this means: the lowest rate in the table is ANZ NZ’s 1‑year fixed special at 4.79%, but that’s available only for a limited term and subject to eligibility. For Australian borrowers, the ANZ Plus variable at 6.25% is the cheapest among ANZ products, though online lenders such as Athena or UBank often advertise rates below 6%.

Timeline: recent ANZ rate moves and outlook

Confirmed facts and what remains unclear

What’s confirmed

• ANZ publishes separate home loan interest rates for fixed and variable loans (ANZ rate page)
• ANZ rates also differ by loan purpose (owner‑occupier vs investment) and repayment type (P&I vs interest‑only) (ANZ official rate page)
• Comparison rates include applicable interest rate discounts and standard assumptions (ANZ Standard Variable Rate page)
• ANZ raised variable rates by 0.25% effective 15 May 2026 (ANZ rate changes)

What’s unclear

• Exact timing and magnitude of future rate cuts — depends on inflation data
• Whether 3% home loan rates will ever return — unlikely in the next 5 years
• Individual eligibility for ANZ’s special or package rates (e.g., the “Simplicity PLUS” index rate is 7.99% p.a. after the 2026 rise, but individual offers may differ)

“ANZ’s home loan rates shown on the page are for secured loans only. Comparison rates help borrowers compare the true cost of a loan because they include applicable interest rate discounts and standard assumptions.”

ANZ Standard Variable Rate page

“According to our forecast, mortgage rates are expected to moderate toward 5% by late 2025 if inflation continues to ease — but that’s two years away and the path is far from straight.”

Bankrate mortgage rate forecast

For Australian and New Zealand home buyers, the choice between fixing or staying variable hinges on your cash flow stability and risk appetite. With rates inching up again in mid‑2026 for variable loans, locking in a fixed term may offer peace of mind. But if you believe the forecasters and expect a drop to 5% by late 2025, floating could pay off. The trade‑off is clear: certainty costs a premium, and flexibility rewards those who can stomach the wait.

Frequently asked questions