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Fourth major bank hikes rates

Fourth major bank hikes rates

All four of the major banks have now announced they will increase variable interest rates.

ANZ today announced that it would lift rates for all Australian variable home and residential investment loans to partially offset rising regulatory capital requirements.

The standard variable rate for owner-occupier home loans (Home Loan Index) will increase by 0.18 per cenr to 5.56 per cent – still the lowest Standard Variable Rate of the major Australian banks.

ANZ's residential investment property loan index will increase by 0.18 per cent to 5.83 per cent.

The changes will be effective 20 November.

ANZ CEO Australia Mark Whelan said the decision reflects the significant additional cost of capital banks are now required to hold against home lending.

“Despite these additional costs, we are committed to working hard to keep lending rates as low as possible for customers and we’re pleased to have been able to maintain the lowest standard rate of the major banks for owner occupiers,” Mr Whelan said.

The 18-basis-point increase will add $36 per month to the average home loan of $242,000.

Fourth major bank hikes rates
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