ANZ to hike home loan rates as funding costs rise

ANZ Bank is part of the Australian ANZ Group.

Asanka Ratnayake/Getty Images

ANZ Bank is part of the Australian ANZ Group.

ANZ will raise mortgage rates on all of its fixed rate terms.

Its “special” one-year fixed rate for people with more than 20% home equity will drop from 4.85% to 5.35% on Tuesday, while its two-year rate will drop from 5.35% to 5.8%.

It will also increase its three-, four- and five-year fixed rates, with its five-year rate rising from 5.65%​ to 5.99%​.

People with less than 20% equity pay higher interest, and its one-year fixed rate for those people will drop from 5.45%​ to 5.95%​.

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The bank will also raise its term deposit rates. It will increase the rate on its one-year term deposits of $10,000 or more by 0.5% to 3.65%.

Its highest rate is the 5-year term deposit rate, which will increase to 4.4%.

A bank spokesman said: “With high levels of volatility in global markets and heightened inflationary pressure domestically, there has been a significant increase in wholesale market rates.”


Reserve Bank Governor Adrian Orr discusses the risk of recession in May.

Wholesale rates are the prices paid by the bank to borrow money from large institutional investors.

“This has been reflected in the changes we are making to our fixed home loan rates and our term investment rates to help clients meet their savings and investment goals,” the holder said. word of ANZ.

Other changes to lending and deposit rates were possible.

“Interest rates will continue to be revised in response to international and local market conditions,” the spokesperson said.

Kiwibank’s team of economists today released its view on current events, predicting a difficult period for households for the rest of the year.

“With rising rates, falling house prices and a grimmer global backdrop, growth in the second half of 2022 looks more fragile by the day,” they said.

Reserve Bank Te Pūtea Matua faced the difficult task of tightening monetary policy to rein in inflation, high for decades, and to do so without plunging the economy into a recession, they said.

This could mean that the official Reserve Bank exchange rate and home loan rates may not rise as far as some expected.

“House prices are falling and the negative wealth effect will eventually limit the amount of rate hikes. We expect the cash rate to peak at 3.5%, not 4%,” they said.

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