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Rate changes

Rate decision – 6 September 2018

ANZ today announced it will increase variable home loan interest rates in Australia following the sustained rise in wholesale funding costs as well as consideration of business performance and market conditions

There will be no change to effective rates for home loan customers in drought-declared regional Australiadisclaimer

For customers making Principal and Interest repayments;

  • ANZ Standard Variable Home Loan Index for owner-occupiers will increase by 0.16% p.a. to 5.36% p.a.
  • ANZ Standard Variable Residential Investment Property Loan (RIPL) Index Rate will increase by 0.16% p.a. to 5.96% p.a. 
  • ANZ Simplicity PLUS Home Loan Rate for owner-occupiers will increase by 0.16% p.a. to 4.71% p.a.
  • ANZ Simplicity PLUS Residential Investment Property Loan (RIPL) Rate will increase by 0.16% p.a. to 4.71% p.a.

For customers making Interest Only repayments;

  • ANZ Standard Variable Home Loan Interest Only Index for owner-occupiers will increase by 0.16% p.a. to 5.91% p.a.
  • ANZ Standard Variable Residential Investment Property Loan (RIPL) Interest Only Index Rate will increase by 0.16% p.a. to 6.42% p.a.
  • ANZ Simplicity PLUS Home Loan Interest Only Rate for owner-occupiers will increase by 0.16% p.a. to 4.91% p.a.
  • ANZ Simplicity PLUS Residential Investment Property Loan (RIPL) Interest Only Rate will increase by 0.16% p.a. to 4.91% p.a.

Line of credit changes;

  • The variable index rate for ANZ Equity Manager account will increase by 0.16% p.a. to 6.53% p.a.
  • The variable index rate for ANZ Home Equity Loan (no longer available for sale) will increase by 0.16% p.a. to 6.61% p.a.

ANZ Money Saver Home Loan Rate (no longer available for sale) and ANZ Money Saver Residential Investment Property Loan Rate (no longer available for sale) will also increase by 0.16% p.a.

These changes will be effective 27 September 2018.

 

For a customer who is an owner occupier making principal and interest repayments on a loan of $300,000, the 0.16% p.a. increase will add $40 to the interest cost per month.

If you would like to see what this may mean for you, please see the Repayments Calculator.

Depending on loan type and the method by which you usually make repayments, your repayment may be automatically changed.  Where applicable, you will be notified.

For principal and interest loans, 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

 

For interest only loans repayments will be automatically adjusted to reflect the new interest rate.

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.

We regularly review interest rates to ensure they reflect current market conditions.  Our review included factors such as: 

  • Dealing with the sustained increase in wholesale funding costs 
  • Business performance and market conditions
  • Supporting customers in drought declared areas
  • Funding costs are the cost that a bank pays to access the funds that it then lends to customers, for example, as home loans. 
  • These funds come via a combination of domestic deposits (invested by individuals, businesses or government), wholesale debt (invested by super funds, companies and other financial investors) and equity (from shareholders)
  • If funding costs increase, it becomes more expensive for ANZ to issue loans

The cash rate is an important input into the cost of funds, but it is not the only driver. Australian banks source a large portion of their funds on wholesale markets that are priced independently to the cash rate. The key Australian reference rate for bank debt, BBSW, has increased since February 2018 and has been sustained at an elevated level, which suggests this increase is not temporary and instead a structural increase in bank funding costs.

As one of Australia’s biggest agribusiness lenders, we know that the drought is having a significant impact on the families, and communities of our customers across Australia. We understand that rising interest rates will impact family budgets, especially in rural communities. Because of this, we have decided customers in drought declared areas will continue to receive the same effective interest rate on their home loan. While these customers will have their applicable index rate increased by the same 0.16% p.a. as other customers, their discount will also be increased by 0.16% p.a., so that there is no change to the effective interest rate they currently pay. 

Customers residing in areas of NSW declared as “Intense Drought” or “Drought” by the NSW Department of Primary Industries, with the exception of the Greater Sydney region (as defined by the ABS); and customers residing in areas of Queensland defined as “Fully drought-declared” or “Partly drought-declared” by the Queensland Government as at 6 September 2018.

The list of postcodes is:

2264, 2265, 2267, 2278, 2280, 2281, 2282, 2283, 2284, 2285, 2286, 2287, 2289, 2290, 2291, 2292, 2293, 2294, 2295, 2296, 2297, 2298, 2299, 2300, 2302, 2303, 2304, 2305, 2306, 2307, 2308, 2311, 2315, 2316, 2317, 2318, 2319, 2320, 2321, 2322, 2323, 2324, 2325, 2326, 2327, 2328, 2329, 2330, 2331, 2333, 2335, 2336, 2337, 2338, 2339, 2340, 2341, 2342, 2343, 2344, 2345, 2346, 2347, 2350, 2352, 2353, 2354, 2355, 2356, 2357, 2358, 2359, 2360, 2361, 2365, 2369, 2370, 2371, 2372, 2379, 2380, 2381, 2382, 2386, 2387, 2388, 2390, 2395, 2396, 2397, 2398, 2399, 2400, 2401, 2402, 2403, 2404, 2405, 2406, 2408, 2409, 2410, 2411, 2415, 2420, 2421, 2422, 2424, 2429, 2440, 2453, 2460, 2469, 2474, 2475, 2476, 2500, 2502, 2505, 2506, 2508, 2515, 2516, 2517, 2518, 2519, 2525, 2526, 2527, 2528, 2529, 2530, 2533, 2534, 2535, 2536, 2537, 2538, 2539, 2540, 2541, 2545, 2550, 2551, 2575, 2576, 2577, 2578, 2579, 2580, 2581, 2582, 2583, 2611, 2618, 2619, 2620, 2621, 2622, 2623, 2626, 2627, 2628, 2629, 2630, 2631, 2632, 2633, 2644, 2648, 2650, 2652, 2665, 2669, 2671, 2672, 2675, 2680, 2681, 2700, 2703, 2705, 2706, 2707, 2710, 2711, 2715, 2716, 2791, 2792, 2793, 2794, 2795, 2797, 2798, 2799, 2800, 2804, 2805, 2806, 2810, 2817, 2818, 2820, 2821, 2822, 2823, 2824, 2825, 2826, 2827, 2828, 2829, 2830, 2831, 2832, 2833, 2834, 2835, 2836, 2839, 2840, 2842, 2843, 2844, 2845, 2846, 2847, 2848, 2849, 2850, 2852, 2864, 2865, 2866, 2867, 2868, 2869, 2870, 2871, 2873, 2874, 2875, 2876, 2877, 2878, 2879, 2880, 4306, 4311, 4312, 4313, 4341, 4342, 4343, 4344, 4346, 4347, 4350, 4352, 4353, 4354, 4355, 4356, 4357, 4358, 4359, 4360, 4361, 4362, 4363, 4364, 4365, 4370, 4371, 4372, 4373, 4374, 4375, 4376, 4377, 4378, 4380, 4381, 4382, 4383, 4385, 4387, 4388, 4390, 4400, 4401, 4402, 4403, 4404, 4405, 4406, 4407, 4417, 4419, 4420, 4423, 4426, 4427, 4428, 4454, 4455, 4461, 4462, 4465, 4467, 4468, 4470, 4472, 4474, 4477, 4478, 4479, 4480, 4481, 4482, 4486, 4487, 4488, 4489, 4490, 4491, 4492, 4493, 4494, 4496, 4497, 4498, 4514, 4515, 4605, 4606, 4608, 4610, 4611, 4612, 4613, 4614, 4615, 4702, 4705, 4707, 4715, 4716, 4718, 4719, 4721, 4724, 4725, 4726, 4727, 4728, 4730, 4731, 4732, 4733, 4735, 4736, 4737, 4738, 4739, 4741, 4742, 4743, 4744, 4745, 4746, 4800, 4801, 4802, 4803, 4804, 4805, 4816, 4817, 4820, 4821, 4822, 4823, 4824, 4825, 4829, 4850

If you would like more information, visit any ANZ Branch, call us on 13 13 14 or refer to our interest rates page, which will be updated on 27 September 2018 to reflect these changes.

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.

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A customer is in “drought-declared regional Australia” if they reside in areas of NSW declared as “Intense Drought” or “Drought” by the NSW Department of Primary Industries, with the exception of the Greater Sydney region (as defined by the ABS) or in areas of Queensland defined as “Fully drought-declared” or “Partly drought-declared” by the Queensland Government as at 6 September 2018. For a list of impacted postcodes, please see above. If you choose to restructure your ANZ loan, this interest rate discount may cease to apply. 

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