ANZ has reduced variable home loan rates, with bigger cuts for borrowers on lower loan-to-valuation ratios.

While pricing for risk is nothing new, in the wake of APRA’s latest macroprudential tightening a number of lenders have targeted low LVR borrowers with mortgage rate changes.

For owner occupier borrowers with LVRs of less than 70 per cent, ANZ has cut the rate on its Simplicity Plus principal and interest loan by 43 basis points to 2.29 per cent.

For owner occupiers with LVRs between 70 and 80 per cent, the Simplicity Plus rate has been cut 23 bps to 2.49 per cent.

For investors, the P&I ate for borrowers with LVRs below 70 per cent has been cut 33 bps to 2.79 per cent, while the rate for borrowers with LVRs between 70 and 80 per cent has been cut 13 bps to 2.99 per cent.

In similar moves by other lenders, following changes last month Commonwealth Bank borrowers pay a variable rate of 2.29 per cent if their LVR is 70 per cent or less, while borrowers pay 2.39 per cent if they have an LVR up to 80 per cent.

NAB dropped variable owner occupier rates on its Basic Variable loan by 40 bps to 2.29 per cent for loans with LVRs up to 80 per cent and by 5 bps to 2.99 per cent for loans with LVRs between 80 and 95 per cent.

Bendigo Bank cut the owner occupier variable rate on its Complete Home Loan by 30 bps to 2.29 per cent for loans with LVRs under 60 per cent.

Meanwhile, fixed rates are going up. On Friday, CBA increased owner occupier rate for rates for terms between one and five years. It hiked its four-year rate by 50 bps to 2.89 per cent.

Canstar said this was the biggest home loan rate increase by a lender since March 2018.

NAB and Westpac have also increased fixed rates in recent weeks.