ANZ to see $300 million windfall thanks to latest home loan rate hike
Article by Tom Watson
Major bank ANZ has become the latest bank to increase home loan interest rates, today announcing a 0.25% increase to its variable investor home loan rate from 5.60% to 5.85%.
The move, which makes ANZ the third of the Big Four banks to increase rates in the last week following earlier moves from NAB and Westpac, is set to earn the bank an extra $300 million a year in interest according to estimates from Mozo data.
ANZ highlighted its regulatory obligations and the competitive nature of the home loan market as the reasons behind the 0.25% rate increase, which is likely to hit investors the hardest.
"We recognise the day-to-day challenges that home-owners face with their house-hold budgets,” said Fred Ohlsson, ANZ Group Executive Australia.
“We believe this is a balanced decision that reflects the range of regulatory and risk factors, and the pressures on family budgets.”
In good news for regular homeowners, ANZ has left its standard variable owner-occupier rate unchanged at 5.25%.
“We are pleased to be in a position to keep rates unchanged for the 80% of owner-occupier home borrowers who pay principal and interest on their loan,” said Ohlsson.
“This is a clear signal that we are open for business for Australians either looking to buy a home or looking for a better deal.”
The unchanged ANZ standard variable owner-occupier rate of 5.25% is the second best offer from the Big Four banks, with only the Commonwealth Bank’s 5.22% owner-occupier rate lower.
Are you thinking about getting into the property market? It could be worth your while to look outside the Big Four banks for a more competitive home loan offer, so don’t miss out on comparing the lowest rates on the market at the Mozo home loan hub.