ANZ cuts variable rates by 20 basis points but borrowers must wait until October 19

ANZ has cut its variable mortgage rates by 20 basis points today following its monthly interest rate review.

The bank's new standard variable mortgage rate will be 6.0% per annum (6.7% per annum comparison rate). but borrowers must wait until October 19 for the reduced rate to kick in - that's 17 days after the RBA cut the cash rate and the longest wait of all for big four mortgage holders.

It is also five days longer than ANZ usually takes to pass on cash rate cuts, according to recent research by the Economic Record. 

The 0.2 percentage point decrease will save customers about $10.75 per week or $560 per year for the average home loan of $280,000.

NAB (new standard variable rate of 6.58%) and Commonwealth Bank (6.6%) have already passed on their rate cuts, with Westpac borrowers having to wait until Monday for the new SVR of 6.71% to take effect.

“Recent stability in wholesale funding markets has been offset by the impact of intense competition for retail deposits as banks seek to improve their funding mix in response to market and regulatory pressures," explanied ANZ Australia chief executive Philip Chronican.

“While this increase in competition is benefiting the majority of our customers through historically high deposit rates relative to the cash rate, last week’s decision from the RBA has provided some scope to once again reduce our variable lending rates."

Variable rates for small business lending will decrease by 20 basis points from October 19.