ANZ to lift variable home loan rates

Friday, 15 July 2022

Hardworking ANZ staff had already received a bonus earlier in the year.

ANZ is to lift its variable home loan interest rate.

It will increase its floating home loan rate from 5.94% to 6.34% on existing loans on August 2.

The rate will apply to new loans from July 19.

The move follows similar variable home loan rate rises announced by BNZ and ASB.

* ASB and Westpac lift home loan rates following Reserve Bank OCR hike

Homes used to cost a lot less, but in previous decades home loan interest rates were much higher. Home loans rates are however on the rise as the Reserve Bank Te Pūtea Matua has been raising the official cash rate to fight inflation.

* Homeowners underestimating scale of home loan rate rises to come

The Reserve Bank Te Pūtea Matua increased the official cash rate (OCR) from 2% to 2.5% on Wednesday in a bid to combat rampant inflation.

ANZ said around 90% of its home loans were on fixed rate terms, and the bank was not making any changes to its fixed rates at this time.

It said its business floating and business overdraft base rates would go up by 50 basis points.

ANZ was also increasing the interest paid on its Serious Saver account by 30 basis points to 1.8%.

Rates would increase on some of its other savings accounts, the bank said.

Ben Kelleher, ANZ managing director for personal banking, said households were being cautious with their finances.

“Our customer data shows people are keeping up their savings habits and continuing to pay down debt where they can despite the economic uncertainty and the higher cost of living,” he said.

“Over a third of customers are ahead on their home loan by 6 months or more and savings continue to lift.”