Yahoo Finance ANZ’s ‘disappointing news’ for home loan borrowers
The major bank has increased its basic variable mortgage rate for new customers.
Aussies hoping to take out a no-frills home loan with ANZ will face higher interest rate costs from today.
Australia’s fourth-biggest home-loan lender has hiked interest rates by 0.10 per cent for new customers taking out its basic variable mortgage.
This comes on top of the November Reserve Bank (RBA) rate hike of 0.25 per cent, but doesn’t impact existing customers.
Are you worried about increased interest rates? Contact tamika.seeto@yahooinc.com
Owner-occupiers paying principal and interest will now pay a new rate of 6.54 per cent, while investors paying principal and interest will have a new rate of 6.69 per cent.
RateCity research director Sally Tindall said today’s rate hike suggested ANZ was only prepared to go so far to fight for new customers.
“This will be disappointing news for potential customers who had their eye on this rate from ANZ. Those already in the process of getting a Simplicity Plus mortgage should ask the bank if it will honour the previous rate,” Tindall said.
“ANZ still has a couple of cashback offers on the table, with $2,000 for select refinancers and $3,000 for first-home buyers. This is likely to keep its home loan book moving at a decent pace, despite this new customer hike.”
RELATED
RBA decision not 'the gift' you think. Finance expert's warning for millions of Aussies
Interest rate relief: How mortgage holders can save $150 per month
Major banks hike rates
ANZ joins Westpac and NAB in upping its home loan rates for new customers. The two major banks recently hiked their fixed rates for new customers, while Westpac also increased its lowest variable home loan rate.
ANZ’s hike today marked the 25th increase among the major banks for new customers since March, RateCity found, on top of the RBA’s hikes.
Westpac now offers the lowest basic variable loan out of the Big Four at 6.44 per cent - however, this is an introductory rate and only applies for two years, before going up by 0.40 per cent.
Tindall noted that smaller lenders were still prepared to fight for new business, with 31 currently offering variable rates under 6 per cent.
“If you live in the home you own, and have a decent stake in it, you can still get a competitive variable rate, however, you might have to go with a lender you’ve never heard of before,” she said.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.
