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Rate changes

Rate decision - 9 June 2017

Update on ANZ Interest Rates

ANZ today announced a five basis point reduction in variable interest rates for customers paying principal and interest on their home loan, taking the bank’s standard variable rate for owner-occupiers to the lowest of major banks at 5.20% p.a.disclaimer

The decrease will benefit more than 80% of ANZ’s customers with an owner-occupier home loan. Customers with an investor loan paying principal and interest will also benefit from a five basis point reductiondisclaimer on their standard variable rates.

Standard variable interest-only home loan rates for investors and owner-occupiers will increase 30 basis points in response to regulatory and market conditionsdisclaimer.

For customers making Principal and Interest repayments;

  • ANZ Standard Variable Home Loan Index for owner-occupiers is reducing by 0.05% p.a. to 5.20% p.a.
  • ANZ Standard Variable Residential Investment Property Loan (RIPL) Index Rate is reducing by 0.05% p.a. to 5.80% p.a.

For customers making Interest Only repayments;

  • ANZ Standard Variable Home Loan Interest Only Index for owner-occupiers will increase 0.30% p.a. to 5.75% p.a.
  • ANZ Standard Variable Residential Investment Property Loan (RIPL) Interest Only Index Rate will increase 0.30% p.a. to 6.26% p.a.

Customers wanting to switch from Interest Only to Principal and Interest can do so without incurring renegotiation fees associated with switching.

Line of credit changes;

  • ANZ Equity Manager account will increase 0.30% p.a. to 6.37% p.a.
  • ANZ Home Equity Loan (no longer available for sale) will also increase by 0.30% p.a. to 6.45% p.a.

These changes will be effective 16 June 2017.

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 16 June 2017 to reflect these changes.

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

  • Supporting customers to own and pay off their homes with principal and interest payments
  • Managing portfolio risk and regulating flows into interest only and principal and interest loans
  • Responding to regulatory obligations to hold an additional level of capital

 

Yes. We are still proceeding with the migration as per the announcement, and impacted customers will start receiving notifications from mid-June onwards outlining when their loan(s) will be migrated. 

Once your loan has been migrated to the new interest only index, the interest rate that will apply to your existing investor or owner-occupier interest only loan will be based on the applicable interest only index. Please refer to your notification letter for more details.

Today’s decision is not in response to the recently announced bank levy and we are still to determine the final impact of the tax.

No.  The Simplicity PLUS product is not part of this change. 

There are no changes to fixed interest rates at this time

  • Principal and interest repayment means that you’re actually paying off part of the loan amount you borrowed (the principal), as well as the interest charges on the loan. 
  • Choosing to make interest only repayments mean your loan repayments only go towards paying off the interest charges on your loan. During the interest only period, your minimum repayments will be lower because you are not required to repay the principal balance. You will have to repay the principal in future and you will pay more over the life of your loan.

Customers will not incur renegotiation fees associated with switching from Interest Only to Principal and Interest repayments.

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 if this is the case.

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

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

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 (for principal and interest). 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.

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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Excludes ANZ Simplicity PLUS, and ANZ Money Saver (no longer available for sale).

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