ANZ confirms fixed rate hike

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The lender has become the latest major bank to raise its fixed interest rates.

The Australian and New Zealand Banking Group (ANZ) has become the latest bank to introduce increases to its fixed interest rates, with the changes taking effect last Friday (12 November).

The announcement comes about a week after the Commonwealth Bank of Australia (CBA) and Westpac confirmed they too would raise their own fixed rates.

These changes saw fixed rates increase by between 20 and 40 basis points. One-year homeowner loans with principal and interest repayment and an LVR of 80% or less, for example, rose 30 basis points to 2.44% (compared to 4.26% vs. year).

Two- and three-year loans on the same terms are now 2.54% per annum (comparative rate 4.11% per annum) and 2.94% per annum (comparative rate 4.08% per year), an increase of 30% and 40 basis points respectively.

Fixed-rate investor loans with principal and interest repayment and an LVR of 80% or less also increased, with one-year rates rising 20 basis points to 2.74% per annum (comparable rate of 4.83% per year).

Two- and three-year investor loans with the same LVR and repayments have also increased as part of these changes, now offering rates of 2.84% per annum (comparative rate of 4.65% per annum) and 3.14% per year (comparative rate of 4.56%). percent per year).

The changes reflect an increase of 40 and 30 basis points respectively.

For interest-only investment loans with an LVR of 80% or less, one-year rates increased by 20 basis points to 2.94% per annum (comparative rate of 4.85% per annum) , while two- and three-year rates increased by 40 and 30 basis points – reflecting new rates of 3.04% (comparative rate 4.69% per annum) and 3.34% per annum ( comparison rate 4.63% per year).

At the time of writing, ANZ currently offers the highest fixed rates for a three-year homeowner loan of the big four banks.

This trend of higher fixed rates comes amid growing speculation that the cash rate will soon rise and the end of the Reserve Bank of Australia’s term funding facility – a perception no doubt supported by a tendency for banks to simultaneously reduce their variable rates.

Last week (11 November), ING Australia introduced variable rate reductions for a selected range of its homeowner and investor loans.

A day after ING introduced these changes, ME Bank confirmed that it was also implementing reductions in the variable rate of its flexible home loan with member package.

Under these changes, variable rates for homeowner loans between $400,000 and $700,000 with an LTV of 60% or less were reduced from 2.33% per annum to 2.24% per annum (rate of comparison of 2.71% per year).

Those whose LVR is between 60 and 70% are now posting a rate of 2.28% per year (2.74% per year), a loss of 10 basis points.

Loans of $700,000 or more with an LVR of 60% or less fell from 2.33% per year to 2.19% per year (comparator rate of 2.66% per year), while those between 60 % and 70% of the LVR decreased by 10 basis points to 2.28% per year (comparative rate of 2.74% per year).

[Related: CBA raises fixed rates]

ANZ confirms fixed rate hike

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Last update: April 05, 2022

Posted: November 15, 2021

Sam Nichols

Sam Nichols is a journalist at The Adviser and Mortgage Business. His reporting has appeared in a range of outlets including ABC News, SBS’ The Feed and VICE.

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