Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
ANZ hikes rates by 30 basis points

ANZ hikes rates by 30 basis points

The big four bank has today announced that its variable interest-only home loan rates for investors and owner-occupiers will increase 30 basis points in response to regulatory and market conditions.

The move will bring ANZ's investor IO variable rate up to 6.26 per cent and 5.75 per cent for owner-occupiers. 

ANZ group executive Australia Fred Ohlsson highlighted that the lift in IO rates is not in response to the recently announced bank levy and that ANZ is still to determine the final impact of the tax.

Advertisement
Advertisement

“We do however recognise the work regulators are doing to manage the growth of both investor and interest-only loans and we will continue to be transparent on the impact this will have on how we structure and price our home loan products,” he said.

The bank has also announced a 5-basis point reduction in variable rates for customers paying P&I home loans.

Mr Ohlsson said many Australians are finding it difficult to manage household budgets at present and ANZ is pleased to be able to reduce rates for the majority of its customers.

“While we know those only paying interest on their loans will be disappointed, we need to manage our regulatory obligations and we are now required to hold additional capital against our home loans,” he said.

“We also need to better balance our portfolio towards those paying off their homes. There are clear benefits for our customers to be paying off their loans and we have made this as easy as possible by removing fees associated with moving across from interest-only loans.”

All changes are effective from 16 June.

ANZ hikes rates by 30 basis points
mortgagebusiness

 

Latest News

Interim CEO of BOQ Anthony Rose has told ASIC that the revised responsible lending guidance must remove incentives for lenders to lower stan...

Approximately 32 per cent of young Australians expect to purchase a home in the next five years. However, their aspirations are not driving...

Impact of moderating house prices and the conversion of a large number of interest-only loans on delinquencies will be “limited” in the ...

FROM THE WEB
podcast

LATEST PODCAST: Results season rolls on

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.