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Major bank announces variable rate changes

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Major bank announces variable rate changes

James Mitchell 2 minute read

A major bank has just announced changes to its variable home loan rates. 

ANZ today announced that it would lift rates for all Australian variable home and residential investment loans to partially offset rising regulatory capital requirements.

The standard variable rate for owner-occupier home loans (Home Loan Index) will increase by 0.18 per cenr to 5.56 per cent – still the lowest Standard Variable Rate of the major Australian banks.

ANZ's residential investment property loan index will increase by 0.18 per cent to 5.83 per cent

The changes will be effective 20 November.

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ANZ CEO Australia Mark Whelan said the decision reflects the significant additional cost of capital banks are now required to hold against home lending.

“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,” Mr Whelan said.

The 18 basis point increase will add $36 per month to the average home loan of $242,000.

Major bank announces variable rate changes
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

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