Major bank raises rates for property investors

A big four bank has announced that its variable mortgage rates for property investors will rise in response to changing market conditions.

ANZ revealed on Friday that its variable Residential Investment Property Loan Index Rate would increase by 8 basis points to 5.60 per cent in response to “rising funding costs and changing market conditions”.

There is no change to ANZ’s standard variable rate for owner occupier home loans. Fixed rates remain unchanged for both investors and owner occupiers.

“Despite residential investor rates remaining at historic low levels, this was a difficult decision that took into account increases in our funding costs and our regulatory obligation to manage a balanced portfolio,” ANZ group executive Australia Fred Ohlsson said.

“There are no changes to our variable rates for owner occupier home loans. Customers concerned about the long-term direction of interest rates are able to take advantage of our competitive fixed rates that remain unchanged for both investors and owner occupiers,” Mr Ohlsson said.

ANZ will also increase its Equity Manager Account rate by 15 basis points to 5.82 per cent.

All changes are effective December 16.

[Related: ANZ loses $2 billion in investor loans]

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