The ANZ Bank has resisted increasing rates for most owner-occupiers, containing rises to interest only loans and going against a recent trend to lift costs for home owners.
Westpac last week followed the NAB by lifting mortgage interest rates for home owners and property investors.
The banks blamed the rises on increased costs for the wholesale funding of mortgages.
The ANZ today increased the variable interest rate paid by property investors by 0.25% of a percentage point to 5.85% from 5.60%.
But rates for owner-occupier borrowers who repay principal and interest on a standard variable home loan remain unchanged at 5.25%.
However, new loans for owner occupiers who want to pay interest only will increase by 0.20% of a percentage point to 5.45% from 5.25%.
Interest only investor variable rate home loans will rise by 0.11% to 5.96% from 5.85%.
Here’s how the major banks compare, according to the ANZ:
“We are pleased to be in a position to keep rates unchanged for the 80% of owner-occupier home borrowers who pay principal and interest on their loan,” says ANZ group executive Australia Fred Ohlsson.
“The changes we are making in home lending affect investors and borrowers who only repay interest on their loan.
“These changes reflect a need to closely manage our regulatory obligations, our portfolio risk and the competitive environment.”
“We recognise the day-to-day challenges that home-owners face with their house-hold budgets. We believe this is a balanced decision that reflects the range of regulatory and risk factors, and the pressures on family budgets.”