Powered by MOMENTUM MEDIA
subscribe to our newsletter

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.

“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.

Advertisement
Advertisement

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
<

PROMOTED CONTENT


>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.

“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

The IMF has urged Australia to consider reforms around housing supply and lending standards, citing apprehension around the upsurge in prope...

Treasurer Josh Frydenberg has backed the net-zero emissions by 2050 target, warning failure to comply will hurt banks’ access to capital a...

The regulator is set to release information setting out how it would use macroprudential policy tools, after expressing concerns around the ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

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