ANZ Bank, Australia’s third largest lender, has cut its home loan rates. The smaller banks have been steadily increasing rates and analysts had expected the big four to start raising theirs. Owner-occupier principal and interest rates on the ANZ’s basic home loan are down by 34 basis points to 3.65%. This rate applies with the ANZ Simplicity PLUS Home Loan with Special Offer Discount when borrowing less than 80% of the property value. Analysts say this is now the lowest ongoing variable rate offered by a big four bank. ANZ has also cut 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. Sally Tindall, research director at RateCity.com.au, a financial comparison website, says it’s a surprising move. “It’s a huge move from ANZ who now offers the lowest ongoing variable rate from one of the major banks,” she says. “It shows that the bank is competing hard to get new customers as non-banks threaten their market share.” Rates at the big four banks: NOW WATCH: Money & Markets videos Business Insider Emails & Alerts Site highlights each day to your inbox. Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.