ANZ joins the rate hike party

Photo: Cameron Spencer/ Getty.

ANZ is increasing variable interest rates for owner occupier loans 0.18 of a percentage point to 5.56%.

The bank says the move will partially offset rising regulatory capital requirements. Residential investment property loans will also rise, 0.18 basis points to 5.83%.

ANZ joins Westpac, Commonwealth and the NAB in raising mortgage rates.

‚ÄúThis decision reflects the significant additional cost of capital banks are now required to hold against home lending,” says ANZ CEO Australia Mark Whelan.

The 18 basis point increase will add $36 per month to the average home loan of $242,000. Currently 42% of ANZ home loan customers are already at least one month ahead on their repayments.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at