ANZ is the second of the major banks to lift its variable interest rate by 0.50%, following CBA which made its decision to lift its variable interest rate on Wednesday morning.
ANZ’s variable interest rate index changes will be effective from 15 July and apply to all ANZ’s variable interest home loan rates in Australia, in response to Tuesday’s RBA lifting the official cash rate 50 basis points to 1.35%. ANZ is also lifting interest rates on some term deposits and savings accounts.
ANZ said its customers would be able to see their new interest rates on the ANZ app or internet banking from 15 July.
In making its decision today, ANZ said it considered various factors including the change in the official cash rate, the impact on customers, business performance and competition.
Read more: ANZ, Westpac hike fixed rates
ANZ group executive Australia retail Maile Carnegie (pictured) said as the cost of living had risen, some customers might be looking for support while they reconsider their household budgets.
“ANZ is . to support these customers,” Carnegie said.
“We helped nearly 100,000 customers manage their home loans through the pandemic and our teams are ready to help now with a range of support options, including a free home loan check-in that can help them reorganise their loan, so it continues to meet their needs.”
The 0.50%pa change will increase monthly repayments by $119 on an average home loan of $450,000 for an owner-occupier paying principal and interest.
ANZ was encouraging its customers to use its new home loan repayment calculator to see how this change will affect their loan.
Read more: Major bank raises interest rate
“To help customers reach their savings goals and provide certainty of higher fixed returns, ANZ will offer a new competitive rate for its 11-month advance notice term deposit of 2.50%pa effective 11 July 2022,” she said.
“ANZ will also increase the bonus interest rate on progress saver accounts by 0.50%pa and will increase the interest rate on ANZ Plus accounts by 0.50%pa to 2.00%pa with both changes effective from 15 July.”