ANZ has announced an increase in variable interest home loan rates in Australia by 0.25% per annum. This follows the Reserve Bank of Australia's decision to raise the official cash rate.
The changes affect Australian home and residential investment loans, with the Standard Variable Rate for Owner Occupiers paying principal and interest rising to 4.64% per annum from 4.39%. For those paying interest only, the rate will increase to 5.19% per annum from 4.94%. These changes are set to take effect on May 13, 2022.
Maile Carnegie, ANZ Group Executive Australia Retail, stated: "In making this decision we considered various factors including the change in the official cash rate, along with the impact on our customers and our business performance."
Carnegie noted that while customers will be affected differently by these changes, many home loan customers are well-positioned to handle rising rates as around 70% of accounts are ahead on repayments. "However, we know some people are doing it tough and we encourage any ANZ home loan customers facing difficulty to contact us so we can work through a range of support options we have available," she added.
The adjustment is expected to increase monthly repayments by $57 on an average home loan of $450,000 for owner occupiers paying principal and interest. ANZ offers several options for customers concerned about their ability to meet repayments due to changing interest rates. Assistance can be sought at ANZ branches, online at anz.com, or by calling their service number.