ANZ profits rise 6.3%

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ANZ has posted a strong half-yearly profit, hot on the heels of two recent interest rate rises.

The bank reported a statutory net profit of $2.9 billion for the six months to 31 March 2017, which was up 6.3 per cent on the year before.

In March, ANZ announced it would increase investor rates by 0.25 percentage points, interest-only owner-occupier rates by 0.20 percentage points and interest-only investor rates by 0.11 percentage points.

In April, the bank increased its interest-only fixed rates by up to 0.40 percentage points, although it decreased its principal-and-interest fixed rates by up to 0.40 percentage points.

ANZ’s results showed that only 6 per cent of the mortgages it gave out during the reporting period were for first home buyers – down from 7 per cent the year before.

Owner-occupiers took out 62 per cent of ANZ’s mortgages, compared to 60 per cent the year before, while investors took out 34 per cent, compared to 36 per cent the year before. Equity lines of credit remained steady at 4 per cent.

The share of borrowers ahead on their mortgage repayments also fell, from 40 to 39 per cent.

Cheaper mortgages await

Mortgage borrowers with ANZ, or any other lender, can save lots of money with the Switch & Save Sale, which is giving borrowers the chance to refinance to a cheaper rate.

If you have a mortgage with ANZ, Commonwealth Bank, NAB or Westpac, you could save up to $39,000 over 15 years by refinancing during the Switch & Save Sale.

RateCity arrived at that figure after calculating how much borrowers would save if they switched from an average-sized mortgage at the average discounted variable rate offered by one of the big four banks to the lowest variable rate in the Switch & Save Sale.

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