ANZ lifts interest rates for some customers

ANZ bank has updated variable home loan and business loan interest rates with increases in variable interest rates for new investor and owner- occupier home loan customers who choose to repay interest-only from April 22.

The variable interest rate for property investors will increase by 0.25 percent/pa from 5.60 percent/pa to 5.85 percent/pa from 31 March.

Variable interest rates for the 80 percent of owner-occupier borrowers who repay principal and interest on their standard variable home loan remain unchanged at 5.25 percent/pa.-

Investor variable rate home loans (interest only) will increase by a further 0.11 percent/pa from 5.85 percent/pa to 5.96 percent/pa.

For business borrowers, business variable rate indices will increase by 0.08%pa.

ANZ Group Executive Australia Fred Ohlsson said 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.

“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 changes we are making in home lending affect investors and borrowers who only repay interest on their loan. These changes reflect a need to closely manage our regulatory obligations, our portfolio risk and the competitive environment.

"We recognise the day-to-day challenges that home-owners face with their house-hold budgets. We believe this is a balanced decision that reflects the range of regulatory and risk factors, and the pressures on family budgets.

“This is why we are providing our customers with interest-only home loans additional notice and the option to switch to repaying principal and interest to take advantage of the lower rate."

Westpac raised its home loan interest rates soon after NAB announced similar hikes.