ANZ turn

Home loan rate changes | ANZ

Rate decision - 24 March 2017
Update on ANZ Interest Rates

ANZ today announced an update on variable home loan and business loan interest rates.

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% p.a.



Effective 31 March 2017, we will increase the variable interest rates for all investor home loans and ANZ Equity Manager accounts:

• ANZ Standard Variable Residential Investment Loans for investors will increase by 0.25% p.a. to 5.85% p.a.
• ANZ Equity Manager will increase by 0.25% p.a. to 6.07% p.a.
• For business borrowers, Business Variable Rate Indices will increase by 0.08% p.a.

Effective 22 April 2017, we will introduce new variable rates (indices) for new lending with interest only repayments:

• ANZ Standard Variable Home Loans for owner-occupiers will increase by 0.20% p.a. to 5.45% p.a. for customer making interest only repayments
• ANZ Standard Variable Residential Investment Loans for investors will increase by a further 0.11% p.a. to 5.96% p.a. for customers making interest only repayments
• ANZ Simplicity PLUS Home Loans for owner occupiers will increase by 0.20% p.a. to 4.75% p.a. (excludes 0.52% p.a. special offer discount) for customers with interest only repayments
• ANZ Simplicity PLUS Residential Investment Loans for investors will increase by 0.20% p.a. to 4.75% p.a. (excludes 0.25% p.a. special offer discount) for customers with interest only repayments

Existing Lending with interest only repayments

From late July, indices applied to new lending will apply to existing investor and owner-occupier home loan customers who choose to repay interest-only. ANZ 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 the lower interest rate without incurring a renegotiation fee before the interest only change takes effect.

Home loan products no longer available for sale (Home Equity Loan and Money Saver) will also increase by 0.25% p.a.

 

Going to really separate the real investors over the wanna be investors.

 

I'm certainly as annoyed over this as the next guy (especially since my ANZ loans have all just ticked over to P&I this month), but realistically if people start panicking on the basis of rates at 5%+, they shouldn't be borrowing money at all.

I don't believe there'll be a crash in Melbourne or Sydney, but if there is any sort of correction, this could be a very good opportunity for smart investors.

 

Cba just did .5% increase for investment io.

 

Not .26%?
now it is CBA's turn

 

I read it to be .24% for investment loans and another .26% for interest only.

Happy to be wrong.

 

Their current interest only investment svr is 5.56%. Their announcement today changes that to 5.94%. So it is a little confusing.... perhaps they included their recent change to IO processed in march, not sure.

Reviewing the current IO p&i changes, current svr 5.56% changing to 5.8%, which tallys up.


Copy from their announcement,

Principal and Interest (P&I) interest rates for Variable Rate Home Loans will increase by 3 basis points for Owner Occupied home loans and 24 basis points for Investment home loans. The new P&I Standard Variable Rate for Owner Occupiers will be 5.25% p.a. and 5.80% p.a.for Investors.
► We will increase Interest Only interest rates for all Variable Rate Owner Occupied home loans by 25 basis points and Investment Home Loans by 26 basis points. The new Interest Only Standard Variable Rate for Owner Occupiers will be 5.47% p.a. and 5.94% p.a.for Investors.

 

Rate announcement - CommBank

So
P&I at 5.80%
PI at 5.94%
Difference of 0.14% due to their recent interest increase for PI

 

CBA is 0.26% + 0.12% from previous announcement.

Current SVR goes from 5.56% to 5.68% (0.12) to 5.94% (0.26).

 

Absolutely. Rate rises are just part of the market. The amount of people crying thief at the banks (outside of this forum) makes me shake my head, as if they thought rates would never rise, ever.

 

ANZ has really ****** me off with this, their break free package is really dear as well.grrrrrrrr. The Reserve Bank Of Australia may as well not have rate meetings, a complete waste of Fckn time, the banks do what they want.

 

Omg sick of this same uninformed comment, sounds like something from news.com.au

 

Unimformed huh???

 

Well a lot of the money they lend was just made more expensive by the US rate rise. Add in the 10% lending limit, CEOs facing inquiries and it makes sense. The increases to OO on P&I is a bit cheeky though.

 

With more to come I expect. Think we will see the next lot of rate rises in around June (July?), after the May federal budget. Think this year the banks will add another 0.25 - 0.4% further, at least.
Excellent. Good to see.

 

I expect they will just follow US interest rate rises.

 

Yeah, could do. So the US is expected to rise twice more this year (2*0.25%), so then we could see the banks a further 0.5% higher on investor IO (maybe less on others OO, etc).
Whatever the percentage, expect more banks rises.

 

Plenty of educated posters on here have explained this a hundred times over

 

Have a couple coming off IO next month. This is going to make an extension a whole lot harder

 

Money aint getting any cheaper, US interest rates are on the rise and this certainly impact on Oz property market, a big game changer for 2017