ANZ increases 4- and 5-year fixed home loans, but lowers 2-year interest rates

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The ANZ today increased its 4- and 5-year interest rates for owner-occupiers who pay principal and interest by up to 0.45 percent.

However, the Big Four Bank has also reduced its 2-year fixed interest rate by 0.10 percent to 1.94 percent for owner-occupiers. The 2-year fixed interest rates for investors were also reduced by 0.15 percent.

For the first time, ANZ now has an advertised mortgage rate of less than 2 percent. In contrast, CBA, Westpac, and NAB have rates below 2 percent as of November 2020.

ANZ is changing – owner-occupiers pay capital and interest

Lowest rate Old tariff New tariff change
2 years

2.04%

1.94%

-0.10%

4 years

2.24%

2.49%

0.25%

5 years

2.24%

2.69%

0.45%

Note: The rates apply to owner-occupiers who pay the principal and interest on a home loan with an LVR of 80% or less.

Home Loans Market Analysis – Which Interest Rates Rise And Fall

Analysis of the RateCity.com.au database shows that the majority of 3-, 4-, and 5-year rate changes over the past month have been increases.

However, when it comes to 1- and 2-year fixed rates, there are still more lenders who are cutting down than increasing. The exception is the Westpac Group, which increased the 2-year fixed interest rates earlier this week.

Fixed price changes in the last month

Lenders Who Cut Lenders who have hiked Currently the lowest tariff
1 year 10 5 1.67%
2 years 16 12th 1.78%
3 years 7th 13th 1.79%
4 years 0 17th 2.04%
5 years 0 18th 2.24%

Source: RateCity, data status as of June 11, 2011. Note that some lenders have raised and lowered the home loan interest rates. The table is valid from May 12th to June 11th, 2021.

Sally Tindall, Research Director at RateCity.com.au, said, “For seven months, ANZ was the only big four bank that didn’t offer mortgage rates below 2 percent. It finally gave in and cut. “

“ANZ’s two-year fixed rate cut is likely to be about getting new business,” she said.

“The latest APRA monthly banking data shows that ANZ’s home loan book fell slightly in April at a time when new lending was soaring to record highs.

“While the bank has cut two-year rates, it has made substantial increases to four- and five-year fixed rates for owner-occupiers in response to the expected increase in financing costs over the next few years.

“When the RBA’s maturity facility expires later this month, banks will have to find cheap money elsewhere. We expect further rate hikes thereafter, especially for maturities of three years and above, ”she said.

Big Four Bank Rates – How They Compare

“This week’s changes from ANZ and Westpac bring the Big Four Bank Pack closer together.

“For months, Westpac had an extremely competitive two-year interest rate that would have depressed its profit margins, while ANZ’s two-year interest rate was noticeably higher than that of the other major banks.

“With today’s cut, ANZ is now back in the game when it comes to two-year fixed rates,” she said.

Lowest mortgage rates for owner-occupiers from the big four banks

CBA Westpac ANZ SNAP
1 year fixed

2.09%

1.99%

2.04%

2.09%

2 years fixed

1.94%

1.89%

1.94%

1.89%

3 years fixed

2.19%

1.98%

2.04%

1.98%

4 years fixed

2.24%

2.19%

2.49%

2.19%

5 years fixed

2.99%

2.49%

2.69%

2.49%

variable

2.69%

2.19% for 2 years, then 2.69%

2.72%

2.69%

Data correct from 06/11/11. Note: Westpac’s rates apply to a loan-to-value ratio of up to 70%.

Lowest prices in the database

Data correct from 06/11/11. Note: The prices apply to owner-occupiers who pay principal and interest. Some LVR requirements apply.



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