ANZ, 86 400 join fixed-rate hike train

By Gerv Tacadena

Three more lenders, which include major bank ANZ, have jumped in on the trend of hiking longer-term fixed rates.

Three more lenders, which include major bank ANZ, have jumped in on the trend of hiking longer-term fixed rates.

This follows the recent fixed-rate increases by CommBank, Westpac, and a slew of other lenders over the past two weeks.

Commenting on the trend, WLTH CEO Brodie Haupt said this could signal further increases in mortgage rates.

“With record numbers of Australians taking advantage of this, borrowers may be in for some interest rate shock that could pressure their finances,” he told Your Mortgage.

Mr Haupt said it’s a good thing that some homeowners were able to build up savings amid the pandemic, which they can use as buffer against future hikes.

“With that being said, there is time to brace before the impact of rising rates is felt, giving households time to prepare for potential repayment increases,” he said.

“Rising interest rates may find us having to readjust - from experiencing some of the lowest mortgage repayments in decades to something near the average.”

ANZ

Similar to what Westpac and CommBank did recently, ANZ increased the rates of its long-term fixed rates while reducing its one-year rates.

The biggest change was the 35-basis point increase in its three-year fixed rate for owner-occupiers.

  • Breakfree Residential Fixed 3 yrs 80-90% - 2.44% p.a. (3.43% p.a. comparison rate)
  • Residential Fixed 3 yrs ≤80% - 2.59% p.a. (3.99% p.a. comparison rate)

ANZ also increased its three-year fixed rate for investors, which is now 25bps higher.

  • Investment Fixed 3 yrs 80-90% - 2.89% p.a. (4.49% p.a. comparison rate)
  • Investment Fixed IO 3 yrs ≤80% - 3.04% p.a. (4.50% p.a. comparison rate)

Meanwhile, ANZ reduced its one-year rates across several fixed-rate products.

  • Breakfree Residential Fixed 1 yr ≤80% - down by 5bps to 1.99% p.a. (3.33% p.a. comparison rate)
  • Breakfree Residential Fixed 1 yr 80-90% - down by 5bps to 2.04% p.a. (3.51% p.a. comparison rate)
  • Investment Fixed 1 yr ≤80% - down by 15bps to 2.54% p.a. (4.81% p.a. comparison rate)
  • Residential Fixed 1 yr ≤80% - down by 15bps to 2.14% p.a. (4.23% p.a. comparison rate)
  • Residential Fixed 1 yr 80-90% - down by 15bps to 2.19% p.a. (4.23% p.a. comparison rate)

86 400

Australia's first smartbank 86 400 also raised its interest rates for owner-occupier and investors taking out longer-term fixed rates.

The biggest change was for its three-year fixed rate for owner-occupiers paying P&I, which was up by 34bps to 2.29% p.a. (2.58% p.a. comparison rate).

Here are the other changes:

  • Own Home Loan Fixed P&I 2 yrs ≤80% - up 10bps to 1.99% p.a. (2.53% p.a. comparison rate)
  • Own Home Loan Fixed P&I 5 yrs ≤80% - up 29bps to 2.79% p.a. (2.77% p.a. comparison rate)
  • Own Home Loan Fixed P&I 2 yrs 80-85% - up 10bps to 2.19% p.a. (2.93% p.a. comparison rate)
  • Own Home Loan Fixed P&I 3 yrs 80-85% - up 30bps to 2.49% p.a. (2.96% p.a. comparison rate)
  • Own Home Loan Fixed P&I 5 yrs 80-85% - up 29bps to 2.99% p.a. (3.12% p.a. comparison rate)
  • Investment Own Home Loan Fixed P&I 3 yrs - up 25bps to 2.39% p.a. (2.82% p.a. comparison rate)
  • Investment Own Home Loan Fixed P&I 5 yrs - up 15bps to 2.99% p.a. (3.03% p.a. comparison rate)

AMP Bank

Following its move to lower variable rates for investors, AMP Bank increased its three-year fixed rate under its Professional Package product for owner-occupiers.

  • Professional Package Residential Fixed P&I 3 yrs ≤80% - up 16bps to 2.14% p.a. (2.65% p.a. comparison rate)
  • Professional Package Residential Fixed P&I 3 yrs 80-90% - up 16bps to 2.34% p.a. (2.91% p.a. comparison rate)

Photo by Pat Whelen on Unsplash.

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