ANZ has become the latest of the big banks to raise its variable interest rates since the US Federal Reserve raised its rates last week.
The bank has raised the interest rate for investors by 0.25 basis points from 5.60% to 5.85% per annum, effective from March 31st. ANZ is also raising it variable rate for its interest only loans.
Investors will see their interest rates rise by 0.11 basis points from 5.85% to 5.96% per annum. Owner-occupiers will see a much larger increase of 0.20 basis points from 5.25% to 5.45% per annum. The rises will come into effect from April 22nd.
Owner-occupiers who repay principal and interest on their standard variable home loans have been spared from any interest rates increases.
In a media release, ANZ Group Executive Australia Fred Ohlsson reported that most owner-occupiers wouldn’t see an interest rate increase.
“We are pleased to be in a position to keep rates unchanged for the 80% of owner-occupier home borrowers who pay principal and interest on their loan,” said Mr Ohlsson. “This is a clear signal that we are open for business for Australians either looking to buy a home or looking for a better deal.”
Ohlsson went on to say that the rate rises that took place were part of a balanced decision.
“We recognise the day-to-day challenges that home-owners face with their household budgets. We believe this is a balanced decision that reflects the range of regulatory and risk factors, and the pressures on family budgets,” said the executive.
ANZ is not the first bank to raise its rates. NAB was the first big bank to raise its rates, increasing their standard variable rate for owner-occupiers from 5.25% to 5.32% per annum.
Westpac has also increased its rates for owner occupiers by 0.03% to 5.32% per annum for its customers with principal and interest repayments.
The banks that have sighted economic and regulatory factors as the reason for the rates hikes.