A second major lender has announced it is increasing its variable interest home loan rates in Australia following "the sustained rise in wholesale funding costs as well as consideration of business performance and market conditions".
This follows Westpac's move last week to hike rates.
ANZ is increasing rates on home and residential investment loans by 0.16%pa. The changes will be effective from 27 September 2018.
There will be no change to effective rates for home loan customers in drought-declared regional Australia.
ANZ group executive Australia Fred Ohlsson said: “This was a difficult decision given we know the impact rising interest rates have on family budgets. The reality is it is more expensive for us to fund our home loans on wholesale markets and we also needed to balance the needs of all stakeholders.
“There is no change to the effective rates of our home loan customers in drought declared regional Australia benefiting more than 70,000 of our customers.
“We wanted to play our part in keeping cash in regional towns impacted by the drought and we hope this will also assist both families and small businesses in these areas."
Customers concerned about rising interest rates can lock in one of ANZ’s competitive fixed rates. ANZ’s two-year fixed home loan rate for owner-occupier Breakfree customers is currently 3.75%pa.
