ANZ lifts fixed rates
OWNER- OCCUPIERS and investors continue to be hit by home loan interest rate hikes after ANZ yesterday raised many of its fixed-rate deals.
But despite constant fluctuations to lenders’ rate offers, it is expected the Reserve Bank of Australia board will keep the cash rate on hold at 1.5 per cent when it meets again on Tuesday.
Following in the footsteps of the Commonwealth Bank and Westpac, ANZ yesterday announced many customers would be slugged with rises.
Some interest-only deals climbed as much as 40 basis points.
But some customers will be spared rate jumps, with owneroccupier and investors’ principal and interest deals falling.
On one of the most popular fixed loans terms, three-year owner-occupier interest-only loans will rise 0.3 per cent to 4.49 per cent, increasing repayments on a $300,000, 30year loan by $75 a month to $1123.
For investors on a threeyear, fixed-rate, interest-only Breakfree deal the rate will rise 0.3 per cent to 4.69 per cent, pushing up repayments by $75 a month to $1173. For both owner-occupiers and investors on principal and interest fixedrate deals, rates on nearly all these products will fall.
The three-year, fixed rate owner-occupier principal and interest deal will fall 0.2 per cent to 3.99 per cent saving customers $34 a month and making repayments $1431.
On a three-year, fixed-rate investor principal and interest deal, the rate will fall 0.1 per cent to 4.44 per cent.
An ANZ spokesman said they “reflect our need to closely manage our regulatory obligations, portfolio risk and the competitive environment.”
National Australia Bank remains the only lender of the big four yet to hike fixed-rate loan deals this month.
Latest inflation figures bounced above 2 per cent for the first time in more than two years as a result of rising petrol prices and power bills.
Financial comparison website Mozo’s spokeswoman Kirsty Lamont said she expected more lenders to increase rates to help limit interest-only lending.