February 10
9:54 am Feb 26, 2012

ANZ lifts home loan, small business rates

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  • ANZ lifts the interest rates

    thewall.com.au thewall.com.au | 4:14 am Feb 10, 2012

    • ANZ lifts the interest rates
    • ANZ Bank made good on its threat to increase mortgage rates
    • They nudge up the interest rate on its standard variable loan today

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  • ANZ lifts home loan, small business rates

    thewall.com.au thewall.com.au | 5:32 am Feb 10, 2012

    ANZ Banking Group has raised its variable interest rates for retail mortgages and small business loans by 0.06 per cent.

    The move follows the Reserve Bank of Australia's (RBA) decision on Tuesday decided to leave the cash rate on hold at 4.25 per cent.

    ANZ on Friday said it had lifted its standard variable interest rates on home loans to 7.36 per cent from 7.30 per cent.

    However it cut its fixed lending rates.

    The bank's three-year fixed rate home loan rate will fall by 0.15 per cent to 5.99 per cent.

    ANZ Australia chief executive Philip Chronican said the decision to lift rates was made because of intense pressure on retail and business banking margins.

    "In December and January we absorbed the additional funding costs in the hope that funding pressures would ease and that no change in lending rates would be necessary," he said in a statement.

    "However, margins in retail and business banking have now been squeezed for a number of months and we've taken the difficult decision to pass on part of the higher costs to customers while we also get on with taking action to reshape the bank for tougher times."

    ANZ no longer announces interest rate movements in lock-step with the RBA.

    The move was designed to change the public's perception that ANZ's loan rates, and cost of funds, were tied to the RBA's cash rate.

    National Australia Bank has the lowest standard variable rate (SVR) of the big four banks at 7.22 per cent.

    Westpac offers 7.36 per cent, and Commonwealth's SVR is 7.31 per cent.

    The rate rise will add $6.50 per fortnight to the average home loan of $280,000, ANZ said.

    Small and medium sized businesses will pay an extra $3 per fortnight on an average loan of $130,000, it said.

    ANZ said 85 per cent of its customers are already ahead on their repayments, meaning they will not need to pay more as a result of the rate rise.

    Mr Chronican also launched a defence of the bank and the wider industry.

    "While we recognise our decision may leave some people frustrated and even angry, we believe Australia needs safe, well-run commercial banks that aren't a burden on taxpayers and that can continue to lend," he said.

    "The alternative of weak, constrained banks that we see in the United States and in Europe is a recipe for stagnation and recession in Australia."

Most Popular Tweets (63)

  • ANZ to increase rates for variable mortgages and small biz by 0.06%pa to 7.36%pa. 3-year fixed rate cut 0.15% to 5.99%pa...

    @ANZ_Media @ANZ_Media - ANZ_Media
    3:30 am Feb 10, 2012

  • Interest rate increased. Are you a Westpac client? You would be slightly more pissed than ANZ customers! http://t.co/CDGOztRI

    @NatoThomas @NatoThomas - Nathan Thomas
    12:14 pm Feb 10, 2012

  • Oh ANZ and Westpac, you bad banks, hopefully this will come back and bite you on the ar**. I'm a W PAC customer too; for now?

    @andrewtwinter @andrewtwinter - Andrew Winter
    12:07 pm Feb 10, 2012

  • Westpac... What are u doing now?

    @audwinsw @audwinsw - Audwin Wibrata
    11:46 am Feb 10, 2012

  • The Facebook IPO: Marketing, hypocrisy, and arrogance - Fortune http://t.co/vQht5tGe

    @CoolTechs @CoolTechs - Cool Techs
    11:05 am Feb 10, 2012

  • Westpac has followed the ANZ decision to lift interest rates, despite warnings from Wayne Swan. http://t.co/wM3QsBdH

    @Y7News @Y7News - Yahoo!7 News
    10:50 am Feb 10, 2012
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