It follows in the footsteps of other major banks
Interest rate rises at the major banks are continuing, as ANZ follows in Commonwealth Bank’s and Westpac’s footsteps.
ANZ has increased its 2-, 3-, 4- and 5-year fixed rates for owner-occupiers paying principal and interest by up to 0.35%, according to ratecity.com.au.
It also cut its one-year fixed rate by five basis points to 1.99% – something CBA had also done, ensuring it still has one rate below the 2% mark.
On Tuesday, Westpac hiked its 2- to 5-year fixed rates for owner-occupiers by 0.10% and last Friday, CBA hiked its 2-, 3- and 4-year fixed rates for owner-occupiers by 0.10%.
RateCity.com.au research director, Sally Tindall, said the tide was going out on ultra-low fixed rates.
“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,” she said.
“Like its big bank competitors, ANZ has kept one rate under 2%, but this rate is unlikely to attract huge take up seeing as it’s just for 12 months.
“Three of the four big banks have now hiked fixed rates within eight days of each other. We expect more lenders to follow in their wake.
“That said, there are still 151 fixed rates under 2%.”
Lowest big four bank owner-occupier home loan rates
|
|
CBA |
Westpac |
ANZ |
|
|
1 yr fixed |
1.99% |
1.99% |
2.09% |
1.99% |
|
2 yr fixed |
2.09% |
1.99% |
1.99% |
2.09% |
|
3 yr fixed |
2.29% |
2.08% |
2.18% |
2.39% |
|
4 yr fixed |
2.39% |
2.59% |
2.49% |
2.69% |
|
5 yr fixed |
2.99% |
2.89% |
2.79% |
2.89% |
|
Variable |
2.29% |
1.99% for 2 yrs then 2.49% |
2.69% |
2.72% |
Source: RateCity.com.au. Note: CBA and Westpac rates are for a loan to value ratio of up to 70%.
Savings rates face cuts
It’s not just home loan rates which are impacted, but NAB has announced cuts to its savings rates by 0.05%. It is the third time NAB has cut savings rates this year, despite no move from the RBA since November 2020.
Tindall said the rate cut was not unexpected. It follows similar cuts to savings rates from the other three major banks over the last 5 weeks.
“In the last month, all four big banks have now trimmed savings rates to relieve pressure on their profit margins,” she said.
“The fact they’re moving in unison is little comfort for their customers, who will be rightly miffed as to why their savings rates keep falling.”
