Yahoo Finance ‘Tricky position’: ANZ hikes fixed mortgage rates
Australia’s fourth-largest bank, ANZ, has today hiked fixed rates for owner-occupiers and investors by up to 0.40 per cent.
All big four banks have now hiked fixed rates this year. Westpac hiked fixed rates on 21 January, while CBA and NAB hiked last week.
ANZ has also cut the variable rate on its basic investor loan but only for new customers.
Also read: NAB hikes fixed rates, joins CBA and Westpac
Also read: $37,021 gain: Property market set to outperform Sydney in 2022
RateCity.com.au research director Sally Tindall said ANZ’s hikes came as no surprise.
“The cost of funding is on the rise and it’s impacting the bank’s profit margins,” she said.
“The big banks are in a tricky position. They still want to chase competition, but the rising cost of funding is making it impossible to offer low fixed rates.”
ANZ previously had some of the most competitive owner-occupier fixed rates of the Big Four banks, but today’s hikes put them at the back of the pack.
“The majority of variable rate changes are still cuts but this trend is starting to slow,” Tindall said.
“Since the start of the year, 15 lenders have cut at least one variable rate, however, eight banks have hiked.
“We expect this trend to reverse as we get closer to the next cash rate hike.”
The Big Four banks are not moving in isolation. Analysis of the RateCity.com.au database shows that lenders big and small have hiked fixed rates this year, with a total of 42 lenders hiking 2-year fixed rates in this time.
Of the Big Four, Westpac has the lowest 1-, 2-, 3-, 4- and 5-year fixed rates across the board.
More rate rises on horizon
Rate rises are coming and Aussies need to be prepared, Reserve Bank of Australia (RBA) governor Philip Lowe warned.
Speaking at the National Press Club, after keeping rates on hold at a record low of 0.1 per cent this week, Lowe said Australians needed to brace themselves for rate rises.
“One of the things that I think will happen is that interest rates will go up. I can't tell you when, but they will go up,” Lowe said.
He said mortgage holders should ensure they had a “buffer” in place to prepare them for a rise in their monthly repayments.
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