Big bank ANZ hikes interest rates across many home loan products

EXCLUSIVE: ANZ has pushed up interest rates on many of its home loans hitting customers with higher costs.

BIG bank ANZ has today increased home loan interest rates across dozens of products and some increases are as high as 20 basis points.

In information released to the mortgage broking industry, ANZ revealed it is pushing up fixed rate interest rate deals across its popular Breakfree home loan deals and also other home loan products.

On a three-year owner occupier principal and interest fixed-rate deal the rate will jump by 10 basis points from 3.99 per cent to 4.09 per cent.

This is on the popular Breakfree product which is among the bank’s most popular home loans.

ANZ is increasing home loan interest rates across their fixed-rate products.

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Analysis crunched by financial comparison website Mozo found this will result in repayments on a $300,000 30-year home loan rising by $17 per month, from $1431 to $1448.

While on a three-year investment interest-only fixed-rate deal on a Breakfree loan the rate will also lift by 20 basis points from 4.69 per cent to 4.89 per cent.

Mozo data shows on the same loan size repayments will increase by $50 per month from $1173 to $1223.

Mozo spokeswoman Kirsty Lamont said these latest moves “reflect the bank’s view of the future direction of interest rates.”

“Yesterday’s better than expected unemployment rate announcement along with a strengthening Aussie dollar has put talks of an official rates rise over the coming year back on the table,’’ she said.

“While the volume of cuts for fixed rate home loans has outstripped rate hikes in recent months, today’s announcement by ANZ could indicate the tide is changing.”

Australia’s latest employment figures delivered 15 months of consecutive growth and in the past 12 months more than 400,000 jobs have been created.

Borrowers should be checking their home loan rate to ensure they are getting a good deal and are not paying too much.

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Realestate.com.au’s head of home loans Andrew Russell has urged borrowers to check on their loan rate and said if customers aren’t getting a good deal they should switch lenders.

“I would seek out a mortgage broker or speak to your lender to see how you can improve your circumstances,’’ he said.

“Their will be other lenders out there watching this and there will be better deals available.”

The Reserve Bank of Australia has kept the cash rate on hold at 1.5 per cent since August 2016.

The RBA board will meet for its first meeting of 2018 on February 6.

An ANZ spokesman said the hikes were a result of inclines to fixed rate funding costs.

“In recent weeks fixed rate funding costs have increased due to increased market expectations for future rises in the official cash rate and movement in long-term offshore wholesale interest rates,’’ he said.

“These contribute to the cost of providing fixed rate home loans.”

All the latest ANZ fixed rate rises are effective from today.

The bank’s increases will impact new customers taking up fixed rate deals and will not impact existing ANZ customers.

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