Interest rates change again at big bank

LAST week, ANZ announced a five basis point reduction in variable interest rates for customers paying principal and interest on their home loans, taking the bank’s standard variable rate for owner-occupiers to 5.2 per cent per annum.

The decrease will benefit more than 80% of ANZ’s customers with an owner-occupier home loan.

Customers with an investor loan paying principal and interest will also benefit from a five basis point reduction on their standard variable rates.

Variable interest-only home loan rates for investors and owner-occupiers will increase 30 basis points in response to regulatory and market conditions.

ANZ group executive Australia Fred Ohlsson said many Australian were finding it difficult to manage household budgets at present and ANZ was pleased to be able to reduce rates for the majority of its customers.

“While we know those only paying interest on their loans will be disappointed, we need to manage our regulatory obligations and we are now required to hold additional capital against our home loans,” Mr Ohlsson said.

“We also need to better balance our portfolio towards those paying off their homes.

“There are clear benefits for our customers to be paying off their loans and we have made this as easy as possible by removing fees associated with moving across from interest-only loans. (The) decision is not in response to the recently announced bank levy and we are still to determine the final impact of the tax.”