ANZ has increased its 2-, 3-, 4- and 5-year fixed rates as Australia’s major banks continue their rate-hike campaign.
The new rates are between 0.15 per cent and 0.35 per cent higher, and apply to owner-occupier loans with principal and interest repayment plans.
It comes just days after Westpac increased its 2- to 5-year fixed rates by 0.10 per cent, while CommBank hiked its 2- to 4-year fixed rates last week by the same amount.
“The tide is going out on ultra-low fixed rates,” RateCity.com.au research director Sally Tindall said.
The Reserve Bank of Australia has indicated it won’t increase rates until 2024, but Australia’s lenders are already moving.
“The cash rate might be on hold until 2024 but the banks believe the cost of funding will continue to increase as the economy rebounds,” Tindall said.
With CommBank, Westpac and now ANZ increasing rates within eight days, more banks are likely to follow, she added.
However, there remain 151 fixed rates under 2 per cent on the market.
Lowest rates on the database
Of the major banks, Westpac still has the lowest 3-year fixed rate at 2.08 per cent, and it offers 1.99 per cent for 1- and 2-year fixed rates.
Lowest big four bank owner-occupier home loan rates
Rising mortgage delinquencies on the horizon
Australian mortgage delinquency rates will rise moderately in 2022, Moody’s Investors Service predicts.
The only slight increase will come down to low interest rates and banking and government relief measures to help borrowers out of lockdown.
However, the rate of delinquencies will vary as different states’ pathways out of COVID-19 restrictions affect economic conditions.
In its most recent report, Moody’s found mortgage delinquency rates increased in every state and territory over the six months to May. Moody’s Investors Service predicts delinquencies will increase over the remainder of 2021.
"And while economic conditions will improve with easing coronavirus restrictions, the fallout from this year's outbreak will moderately increase mortgage delinquencies over the coming months," said Alena Chen, a Moody's vice-president and senior credit officer.
“As states and regions undergo divergent pathways to recovery, the outlook on mortgage delinquencies will vary depending on the pace of each state's economic rebound next year.”