Two Australian banks, including one of the big four, have announced pricing changes to their fixed and variable rate mortgage products.
On Friday, ANZ announced changes that saw its interest-only rates rise by as much as 40 basis points. ANZ’s two-, four- and five-year fixed rate interest-only loans have increased 40 basis points, while the same products on principal and interest have been cut by 10 basis points.
The bank’s three-year fixed rate (interest-only) has increased 30 basis points while its one-year fixed rate has risen 10 basis points. The same products on principal and interest have been slashed by 20 and 40 basis points, respectively.
“These changes are obviously a response to APRA’s recent restrictions around interest-only and investment lending,” Mozo product data manager Peter Marshall said.
“It seems that ANZ is keen to slow down the rate of interest-only loan applications, and instead nudge customers toward making principal and interest repayments, which generally present less risk for the bank.”
Meanwhile, Teachers Mutual Bank quietly raised both fixed and variable rates, effective today, by up to 10 basis points. Full details of the group’s new rates can be found here.
[Related: Westpac hikes interest only rates]