ANZ cuts IO loan rates by up to 0.26 basis points

ANZ has dropped the fixed interest rates on selected residential investment home loans as mortgage brokers sense more rate cuts for investors are expected over coming weeks. Other lenders are likely to move by cutting investment rates following APRA's recent removal of lending caps.

Ratecity reported two-year fixed rates on ANZ principal & interest residential investment loans dropped 0.11 basis points, aimed at encouraging investors back into the property market as lower rates make it cheaper to borrow.

The two-year fixed rates for interest only and interest in advance residential investment loans fell by 0.26 basis points.

It puts the headline rates at 4.33 per cent and 4.13 per cent respectively.

Westpac has the highest exposure to interest-only loans.