ANZ increases investor loan rates


ANZ increases investor loan rates

Posted on Thursday, July 23 2015 at 3:13 PM

ANZ today announced interest rates for residential investment property loans will increase to manage investor lending growth targets and in response to changing market conditions.

ANZ said there was no change to other variable lending rates
including the standard variable rate for owner-occupied home loans or for
business lending. Fixed rates for new owner-occupied home lending will be
reduced by up to 0.40 per cent. 
Effective Monday, 10 August 2015, ANZ’s variable residential investment property
loan (RIPL) index rate will rise by 0.27 per cent to 5.65 per cent.
Fixed rates for new residential investment lending will also increase by up to
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 CEO Australia Mark Whelan says.

“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.”

ANZ has also introduced a series of other measures recently to
improve the mix between investor and owner-occupied lending. For residential
investment lending, these include reducing interest rate discounts, increasing
the deposit required to at least 10 per cent and increasing interest rate
sensitivity buffers.


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