ANZ has joined it’s big four counterparts in raising fixed rates this year, announcing a hike of up to 0.4 per cent for owner-occupiers and investors.
It comes after Westpac increased its fixed rates on 21 January and the CBA and NAB hiked them last week.
On a one-year fixed term loan for owner-occupiers the rate has risen 0.1 per cent, which is a $26 increase in repayments on a $500,000 mortgage.
For a five-year fixed term it means a 0.4 per cent rate rise and an extra $115 on each repayment on a $500,000 loan..
ANZ has also cut the variable rate on its basic investor loan but only for new customers.
RateCity.com.au Research Director Sally Tindall, said ANZ’s rate hikes were no surprise.
“The cost of funding is on the rise and it’s impacting the bank’s profit margins,” she said.
“The big banks are in a tricky position. They still want to chase competition, but the rising cost of funding is making it impossible to offer low fixed rates,” she said.
Ms Tindall said the big four banks were not moving rates in isolation, with 42 lenders on RateCity’s database hiking two-year fixed rates this year.
“ANZ previously had some of the most competitive big four bank owner-occupier fixed rates, however, this hike puts them at the back of the big four pack,” she said.
“The majority of variable rate changes are still cuts but this trend is starting to slow. Since the start of the year, 15 lenders have cut at least one variable rate, however, eight banks have hiked.
“We expect this trend to reverse as we get closer to the next cash rate hike,” she said.
