ANZ Banking Group Ltd has joined the other big banks in lowering its fixed home loan rates and fixed residential investment loans rates by between 30 basis points and 50 basis points.
It is the second time this month ANZ has cut its fixed rates and comes as the banks get some relief on the price they pay for their own funds on the short-term money market.
The ANZ's move follows similar decisions by rival banks National Australia Bank Ltd and Westpac Banking Corporation, which both lowered their fixed-term rates earlier this week - both for the second time this month.
The Commonwealth Bank of Australia last week lowered its fixed- term rates for second time this month.
ANZ's one-year fixed rate will be trimmed by 0.5 per cent to 8.49 per cent from September 1, while other fixed terms - from two years to 10 years - will be reduced by 0.30 per cent.
Thursday's announcement from the ANZ follows its pledge last week that it would pass in full to its home loan customers any rate cut the Reserve Bank of Australia (RBA) decides at its next board meeting.
National Australia Bank has also offered a similar, although more qualified undertaking - that it will match a 25 basis point cut to interest rates if the RBA eases monetary policy by that amount at its September 2 board meeting.
Market watchers are tipping the RBA will cut rates at its board meeting next week, but speculation continues over the extent of any cut.
Westpac and Commonwealth Bank have so far refused to guarantee they will pass in full any cut to the official 7.25 per cent cash rate.