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ANZ hikes fixed rates 3 times in 7 weeks

ANZ hikes fixed rates 3 times in 7 weeks

Australia’s fourth largest bank, ANZ, has today increased fixed rates for the third time in less than two months for owner-occupiers and investors.

As a result, the bank’s 3-year fixed rate has risen by almost a full percent in seven weeks.

Today’s ANZ hikes for owner-occupiers paying principal & interest

Old rateNew rateChange
1-year fixed

2.29%

2.39%

+0.10%

2-year fixed

2.39%

2.59%

+0.20%

3-year fixed

2.79%

2.99%

+0.20%

4-year fixed

2.99%

3.39%

+0.40%

5-year-fixed

3.19%

3.59%

+0.40%

Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395.

Previous ANZ owner-occupier fixed rate hikes

  • October 22: increased 1- to 5-year rates by up to 0.35%
  • November 12: increased 1- to 5-year rates by up to 0.41%

Impact of ANZ’s last three rate hikes:

2 months agoTodayChange

(% points)

Diff. in repayments ($500K)
2-year fixed

2.04%

2.39%

+0.35%

$89

3-year fixed

1.94%

2.59%

+0.65%

$166

4-year fixed

2.04%

2.99%

+0.95%

$247

5-year-fixed

2.49%

3.39%

+0.90%

$242

1-year fixed

2.69%

3.59%

+0.90%

$245

Note: Monthly repayments are for the fixed rate term and are based on an owner-occupier paying principal and interest taking out a 30-year, $500,000 loan.

The end of rock-bottom fixed rates?

Lenders, including the big four banks, have made multiple hikes to the same fixed rates over the last two months.

  • 20 lenders have hiked their fixed rates at least twice.
  • 15 lenders have hiked their fixed rates 3 separate times, including CBA, NAB and ANZ (Westpac 4 separate times).
  • Average big 4 bank 3-year fixed rate for owner-occupiers paying principal and interest has risen by 0.89% to 2.99%.

RateCity.com.au research director, Sally Tindall, said: “The ultra-low fixed rate party of 2021 is quickly running out of steam.”

“Like its big bank competitors, ANZ has decided to hike fixed rates several times in the last two months to offset rising funding costs,” she said

“There are likely to be a lot of frustrated ANZ customers waiting in the queue who will now be paying a significantly higher rate than the one they initially applied for, unless they paid a rate lock fee.

“There are 70 fixed rates under 2 per cent, but the list is shrinking by the day

“People who want to fix but haven’t, shouldn’t give up hope. There are still some good deals out there, however, they’ll probably need to look beyond the big four banks,” she said.

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1-year fixed2.49%2.34%2.49%2.39%
2-year fixed2.59%2.49%2.59%2.59%
3-year fixed2.99%2.89%3.09%2.99%
4-year fixed3.09%3.19%3.29%3.39%
5-year-fixed3.39%3.39%3.49%3.59%
Variable2.29%2.19%2.29%2.29%

Lowest owner-occupiers rates on RateCity

LenderAdvertised rate
1-year fixedGreater Bank1.59%
2-year fixedBeyond Bank1.79%
3-year fixedAustralian Mutual Bank1.98%
4-year fixedCredit Union SA2.39%
5-year-fixedBankVic2.49%
VariableReduce Home Loans1.77%

Note: Rates are for owner-occupiers paying principal and interest, LVR requirements apply for some loans.

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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