A major bank has announced changes to its investor and interest-only home lending rates
ANZ will increase rates on variable home loans for investors and interest-only home loans.
Variable interest rates for investors will increase by 0.25%pa from 5.60%pa to 5.85%pa, effective 31 March.
The bank will also introduce new variable interest rates on interest-only home loans.
For new lending, investor variable rate home loans (interest only) will increase by a further 0.11%pa from 5.85%pa to 5.96%pa. Owner-occupier variable rate home loans (interest only) will increase by 0.20%pa from 5.25%pa to 5.45%pa. Both are effective from 22 April.
For existing lending increases applied to new lending will apply from late July to existing investor and owner-occupier variable home loan customers who choose to repay interest-only. ANZ stated it 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.
Variable interest rates for the 80% of owner-occupier borrowers who repay principal and interest on their standard variable home loan remain unchanged at 5.25%pa.
ANZ group executive Australia, Fred Ohlsson said, “The changes we are making in home lending affect investors and borrowers who only repay interest on their loan. These changes reflect a need to closely manage our regulatory obligations, our portfolio risk and the competitive environment.
"We recognise the day-to-day challenges that home-owners face with their house-hold budgets. We believe this is a balanced decision that reflects the range of regulatory and risk factors, and the pressures on family budgets.
“This is why we are providing our customers with interest-only home loans additional notice and the option to switch to repaying principal and interest to take advantage of the lower rate,” Ohlsson said.
Variable interest rates for investors will increase by 0.25%pa from 5.60%pa to 5.85%pa, effective 31 March.
The bank will also introduce new variable interest rates on interest-only home loans.
For new lending, investor variable rate home loans (interest only) will increase by a further 0.11%pa from 5.85%pa to 5.96%pa. Owner-occupier variable rate home loans (interest only) will increase by 0.20%pa from 5.25%pa to 5.45%pa. Both are effective from 22 April.
For existing lending increases applied to new lending will apply from late July to existing investor and owner-occupier variable home loan customers who choose to repay interest-only. ANZ stated it 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.
Variable interest rates for the 80% of owner-occupier borrowers who repay principal and interest on their standard variable home loan remain unchanged at 5.25%pa.
ANZ group executive Australia, Fred Ohlsson said, “The changes we are making in home lending affect investors and borrowers who only repay interest on their loan. These changes reflect a need to closely manage our regulatory obligations, our portfolio risk and the competitive environment.
"We recognise the day-to-day challenges that home-owners face with their house-hold budgets. We believe this is a balanced decision that reflects the range of regulatory and risk factors, and the pressures on family budgets.
“This is why we are providing our customers with interest-only home loans additional notice and the option to switch to repaying principal and interest to take advantage of the lower rate,” Ohlsson said.
