ANZ now offers the lowest ongoing variable home loan rate among Big Four

ANZ has cut owner-occupier principal and interest rates on its basic home loan, bringing the rate down by 34 basis points to 3.65 per cent.

ANZ has also cut some of its fixed home loan rates by up to 24 basis points for owner-occupier principal and interest and up to 13 basis points for investor principal and interest loans.

This follows similar loan rate cuts from Commonwealth Bank earlier this week.

According to the latest Canstar data 10 different institutions made rate changes to their home loan products, with a total of 58 product level changes recorded.

Sally Tindall, research director at RateCity.com.au, said it was a surprising move from ANZ to buck the rate-hike trend.

"This is now the lowest ongoing variable rate offered by a Big Four bank," she said. 

“It shows that the bank is competing hard to get new customers as non-banks threaten their market share."

“This comes at a time when the market was expecting ANZ to hike rates and not cut them and the Royal Commission has turned the playing field on its head,” she concluded.