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ANZ regularly reviews its standard variable interest rates on home loans and residential investment loans, including following the Reserve Bank of Australia meetings.

Rate decision - 9 December 2016

ANZ Residential Investment Property Loan interest rates to increase. 

Effective 16 December 2016:

  • Residential Investment Property Loan Index Rate to increase by 0.08% p.a. to 5.60% p.a.
  • Equity Manager Account interest rate to increase by 0.15% p.a. to 5.82% p.a.

There is no change to interest rates for Owner Occupier home loan customers. ANZ’s Standard Variable Rate to remain at 5.25% p.a.

This decision reflects our current outlook across the key factors we consider in our reviews, including:

  • our cost of funding;
  • the impact of market conditions on our customers;
  • our competitive positioning;
  • ensuring attractive returns for depositors; and
  • our regulatory requirement to operate safely and securely for our customers.

ANZ's review of interest rates

The five key criteria we base our decisions on are:

  1. Ensuring attractive returns for depositors: ANZ is committed to providing customers with competitive returns and absolute security for their savings.
  2. The cost of wholesale funding: This covers the interest we pay on funds we borrow from wholesale money markets.
  3. Our competitive position: ANZ is determined to remain competitive by attracting customers, winning business and managing our costs.
  4. The impact of market conditions on our customers: We are committed to lending responsibly and giving consideration to the financial health of our customers, the economy and the banking system in Australia.
  5. Regulatory requirements: As a bank, ANZ works within a strong prudential and regulatory environment. For example, we must hold capital reserves and levels of liquidity to operate safely and securely for customers.

Communicating these criteria helps us better explain our future decisions on interest rates to customers.

The interest rate review applies to variable interest rate home loans and residential investment loans.

How does this affect customers?

Depending on loan type and the method by which you usually make repayments, your repayment may be automatically changed. You will be notified if this is the case.

If rates change and the amount of your required regular repayment changes, we will give you written notice outlining:

  • the new minimum repayment amount
  • when it will take effect
  • any action you are required to take.

Note: If interest rates change and your minimum repayment amount goes down, you can choose to do nothing and keep paying the same amount and pay off your home sooner. Or, you can choose to reduce your repayment amount.

If you wish to change your loan repayments yourself at any time, you can do so as follows:

  • If you make your payments via a Direct Loan Payment from an ANZ account, adjustments can be made via Internet Banking or by calling 13 25 99 8.00am and 8.00pm (AEST), Monday to Friday
  • If you make your payments via a transfer from an account held at another financial institution, or by salary deduction through an employer, you will need to provide instructions to your financial institution or your employer to change repayments to reflect the new repayment amount.
  • If you make your payments via an ANZ deposit book, you can visit the nearest ANZ branch.

ANZ will announce the effective date at the same time as we announce the change in rate.

Please contact us so we can review your situation and explore the available options. More information can be found at our dedicated Hardship online site on anz.com.

The Australian market is highly competitive, which can be seen in the difference between the variable interest rates of banks.

In addition to the major banks, there are over 100 other home loan providers in the market, offering a total of more than 500 home loan products.

As a bank with more than 6 million Australian customers, we need to make sure we balance the needs of both borrowers and depositors. This means providing competitive and affordable interest rates, innovative products and flexible options that give customers confidence and control over their finances.

As one of Australia’s top five listed companies, we also have a large and diverse shareholder base, including retirees and superannuation holders, who rely on ANZ to deliver a competitive return on their investments.

To do this on a consistent basis means we need to attract customers, win business, manage our costs and remain competitive in the market.

The market is highly competitive, which can be seen in the difference between the variable interest rates of banks. In addition to the major banks, there are over 100 other home loan providers in the market, offering a total of more than 500 home loan products.

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