ANZ lifting interest-only, investor rates

Adam Smith 24 March 2017

graph hand1ANZ has announced it will lift rates on investors and interest-only borrowers.

We previously reported that ANZ’s IT systems would not allow the lender to differentiate pricing between interest-only and principal and interest borrowers. The bank is apparently working to rectify the situation, as today it announced it would raise rates for both new and existing interest-only borrowers, albeit with a long lead time.

ANZ said it would lift rates across all investor variable rate loans by 25 basis points from 31 March. This will take the bank’s variable rates for investors from 5.60% to 5.85%. From 22 April, though, new interest-only investor loans will be hit by a further 11 basis point increase, taking the rate to 5.96%.

Owner occupier borrowers who choose interest-only payments will also see a rate increase of 20 basis points, from 5.25% to 5.45%. The change will be effective from 22 April for new borrowers.

Existing borrowers will have longer to adjust to rate changes, however. The bank said the changes for interest -only loans wouldn’t hit existing customers until late July.

“ANZ will be writing to existing interest-only variable home loan customers from May to provide them with advance notice of the change and the option of switching to repay principal and interest on their loan at a lower interest rate without incurring a fee,” the bank said in a release.

Latest home loans headlines

Image: Shutterstock

More help from finder.com.au

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
feedback