ANZ lifts interest rates for property investors

Interest Rates

The ANZ Bank is lifting its interest rates for residential investment property to move focus away from investors and more onto owner-occupiers.

As of the 10th August this year, ANZ’s variable Residential Investment Property Loan Index Rate will rise by 0.27 per cent to 5.65 per cent pa, in response to changing market conditions and the crackdown on lending to landlords.

Fixed rates will also increase by up to 0.30 per cent.

The change comes as the Australian Prudential Regulation Authority forced banks to slow their loan growth among property investors to less than 10 per cent a year.

While these rates go up, there will be no change to the standard variable rate for owner-occupied home loans or to business lending rates.

On top of this, ANZ will be cutting the four-year fixed rate for owner-occupied home loans by up to 0.40 per cent to 4.74 per cent. The two and three-year fixed rates will be cut by 0.30 per cent. 

“Although interest rates for residential property investors are at very low levels historically, the decision to raise interest rates for residential investment lending has been difficult but necessary in the current environment,” ANZ chief executive Mark Whelan said. 

“It allows us to balance the mix of our lending between owner-occupied and investment lending as well as the impact of changing market conditions. This includes a decision to cut fixed rates for new owner-occupied home lending.” 

“This is a considered decision that takes into account our customers’ position and the criteria we look at when setting rates including our competitive position, our regulatory obligations and the state of the residential property market.”


News & Resources