Major bank ANZ is the first of the big four to increase interest rates on mortgages, following the Reserve Bank’s decision to lift the official cash rate by 25 basis points.
Less than three hours after the RBA board met on Tuesday, for its first decision on the OCR for 2023, ANZ announced it would be matching the rise in the cash rate, lifting variable interest rates across its home loan range by 0.25%pa, effective from February 17.
ANZ will also increase the rate available to savings customers on its ANZ Plus Save account for balances less than $250,000 by 0.25% to 4%, effective February 14. Last week ANZ increased the rate available on a new 12-month Advance Notice term deposit to 4.10%. The bank said it continues to review other deposit rates.
The RBA delivered its ninth consecutive rate rise on Tuesday, lifting the OCR by 25bp to 3.35%, with RBA governor Philip Lowe stating that inflation, sitting at 7.8%, remained higher than expected and strong domestic demand was adding to these inflationary pressures.
“At a time of increased cost of living and rate changes, some customers will be feeling greater financial pressure,” said ANZ group executive Australia retail Maile Carnegie (pictured above).
“We urge anyone facing difficulties to speak with our expert teams to discuss the options available to support them and their specific circumstances as early as possible.”
Carnegie said the 0.25% increase to variable home loan interest rates would increase monthly repayments by $66 on a variable home loan of $450,000 for an owner occupier paying principal and interest.
“We know many customers are looking closely at savings rates. Today we’ve announced we will again increase the rate on our ANZ Plus Save account, to take it to 4%pa. For customers that want greater certainty with their savings rate, last week we increased our 12-month Advance Notice term deposit to 4.10%pa,”she said.
ANZ advised its home loan customers to visit its updated “Manage your loan page”, access the bank’s home loan repayment calculator to see how the change would affect repayments, undertake a free home loan check-in, and use the ANZ budget planner to understand spending habits.
ANZ said it considered a range of factors in making decisions on interest rates, including the impact on customers, the change in the official cash rate, business performance and competitive pressures.
