ANZ has become the last major lender to increase variable rates on owner occupied and investment home loans.
Effective 20 November, the standard variable rate for owner-occupier home loans will increase by 0.18% to 5.56%. However, according to ANZ, this is still the lowest standard variable rate of the major Australian banks. The standard variable rate for residential investment property loans will also increase by 0.18% to 5.83%.
Like the rest of the major banks, ANZ also cited rising regulatory capital requirements as the decision behind the interest rate increases.
“This decision reflects the significant additional cost of capital banks are now required to hold against home lending,” ANZ CEO Australia Mark Whelan said.
“Despite these additional costs, we are committed to working hard to keep lending rates as low as possible for customers and we’re pleased to have been able to maintain the lowest standard rate of the major banks for owner occupiers.”
According to ANZ, the 18 basis point increase will add $36 per month to the average home loan of $242,000. Currently 42% of ANZ home loan customers are already at least one month ahead on their repayments.
