The music continues with ANZ announcing it will increase its variable interest home loan rates. This of course is the second of the big four banks to raise mortgages in response to higher funding costs.
Variable interest rates for home and residential investment loans will rise by 16 basis points (Westpac’s was 14 basis points), effective September 27. This means the declared rate for a principal and interest loan will now be 5.36%. That said, NO rise for ANZ home loan customers in drought-declared regional Australia are planned.
Fred Ohlsson, ANZ Group Executive Australia, says the decision to lift was a difficult one.
“We know the impact rising interest rates have on family budgets,” he says.
“The reality is it is more expensive for us to fund our home loans on wholesale markets and we also needed to balance the needs of all stakeholders.
“There is no change to the effective rates of our home loan customers in drought declared regional Australia benefiting more than 70,000 of our customers.
“We wanted to play our part in keeping cash in regional towns impacted by the drought and we hope this will also assist both families and small businesses in these areas.”
The new rates:
Source: ANZ
