ANZ deals simultaneous rate hikes and cuts

Adam Smith 28 April 2017 NEWS

Australian cash money calculatorANZ has hiked interest rates for interest-only borrowers, while dealing cuts to principal and interest borrowers.

Following on a trend of rising home loan interest rates, ANZ has announced it will raise rates for many of its owner occupier and investment loans, but has also cut rates on its 3 year principal and interest fixed rate loans, News Corp has reported.

Interest-only borrowers will see the steepest increases. ANZ will lift rates by 40 basis points on its 2, 4 and 5 year fixed rate owner occupier interest-only Breakfree loans. The bank’s 3 year interest-only rate will rise by 30 basis points to 4.49% for owner occupiers and 4.69% for investors.

Meanwhile, the bank reduced rates across a number of its principal and interest products. ANZ’s 3 year fixed rate principal and interest loan will fall by 0.2% to 3.99% for owner occupiers. The bank also cut its 3 year fixed principal and interest fixed rate for investors, shaving off 10 basis points to bring the rate to 4.44%.

An ANZ spokesman told News Corp the changes “reflect our need to closely manage our regulatory obligations, portfolio risk and the competitive environment”.

The changes come ahead of Tuesday’s Reserve Bank meeting, where the RBA board is largely expected to leave the cash rate untouched at 1.50%. The RBA’s inaction has not kept lenders from raising rates, however.

Image: Shutterstock

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