ANZ confirms hike in fixed rates

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The lender became the last major bank to increase its fixed interest rates.

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

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

These changes saw fixed rates rise by a figure of between 20 and 40 basis points. One-year homeowner loans with principal and interest repayment and an LVR of 80 percent or less, for example, increased 30 basis points to 2.44 percent (comparison rate of 4, 26 percent per year).

Two-year and three-year loans under the same conditions now amount to 2.54% per annum (comparison rate 4.11% per annum) and 2.94% per annum (comparison 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 increasing 20 basis points to 2.74% per annum (comparison 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 (comparison rate of 4.65% per annum) and 3.14% per annum (comparison rate 4.56 percent per annum).

The variations reflect a respective increase of 40 and 30 basis points.

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

At the time of writing, ANZ currently offers the highest fixed rates for a three-year owner-occupied loan among the Big Four banks.

This trend of rising fixed rates comes amid growing speculation that the spot rate will rise soon and the end of the Reserve Bank of Australia’s term finance facility – a perception arguably supported by a trend from banks. simultaneously reduce their variable rates.

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

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

As part of these changes, variable rates for homeowner loans between $ 400,000 and $ 700,000 with an LVR of 60% or less have been reduced from 2.33% per annum to 2.24% per annum. comparison of 2.71% per year).

Those with an LVR between 60% and 70% now have 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 percent or less fell from 2.33 percent per annum to 2.19 percent per annum (comparison rate of 2.66 percent per annum), while that those between 60 and 70 percent LVR have declined 10 basis points to 2.28 percent per year (comparison rate of 2.74 percent per year).

[Related: CBA raises fixed rates]

ANZ confirms hike in fixed rates

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Last updated: November 12, 2021

Posted: November 15, 2021

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Sam nichols

Sam Nichols is a reporter for The Adviser and Mortgage Business. His reporting has featured in various media including ABC News, SBS’s The Feed and VICE.


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