ANZ Banking Group has cut its standard variable rates on home loans by 20 basis points, in line with most of its rivals.

ANZ will reduce its standard variable home loan rates from 6.8 per cent to 6.6 per cent, effective from October 19.

The rate cut will save customers with an average home loan of $280,000 about $10.75 per week and $560 per year, ANZ said today.

The move follows the Reserve Bank of Australia’s 25 basis point cut to the cash rate on October 2.

National Australia Bank and Commonwealth Bank have since reduced their standard variable rates by 20 basis points, while Westpac cut by 18 basis points.

Commonwealth Bank today cut interest rates on its fixed-rate home loans to a 22-year low.

The bank also has promised to beat the advertised fixed rates of its three major rivals.

Rates on new fixed-rate mortgages, for one to five years, have been reduced by up to 30 basis points, CBA said.