ANZ increases interest only home loan rates once again
Article by Rebeccah Elley
ANZ has today announced changes to its variable rate home loans, targeting borrowers on interest only loans with rate increases of 30 basis points. This follows similar rate hikes made by the big bank earlier in the year, which saw interest-only variable rates rise by up to 0.25%.
The recent rate increase which takes effect on 16 June, will bring ANZ’s standard variable rate for interest only loans to 5.75% for owner occupiers and 6.26% for investors.
The news may hit the pocket of those on interest only loans, however there was some good news for customers paying both the principal and interest, as ANZ announced it would slash rates by 5 basis points on these loans. This will bring the standard variable rate for owner occupiers to 5.20% - the lowest currently offered by the big banks.
ANZ follows a range of other lenders to have increased rates on interest only loans, whilst reducing rates for owner occupiers over the last few weeks, with ING Direct the latest bank to do so.
While there has been some talk that the big banks would lift rates due to the big bank levy introduced in last month’s Budget, ANZ Group Executive Australia Fred Ohlsson explained this wasn’t behind the rate changes and instead pointed to regulatory restrictions introduced by APRA earlier in the year.
“Today’s decision is not in response to the recently announced bank levy and we are 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 added.
Have you been affected by a recent rate increase? Visit Mozo’s comparison hub to compare a range of deals under the 4% mark.