David White/Things
ANZ has become the third major bank to say it would raise interest on floating-rate home loans.
ANZ will increase the variable interest rate for home loans.
On August 2, it will increase the rate for variable home loans from 5.94% to 6.34% on existing loans.
The rate for new loans will apply from 19 July.
The move follows similar variable interest rate hikes for home loans announced by BNZ and ASB.
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The Reserve Bank’s Central Bank rose the official cash rate (OCR) from 2% to 2.5% on Wednesday in an effort to curb rampant inflation.
ANZ said about 90% of its home loans were fixed-rate and the bank was not making any changes to fixed rates at this time.
It said the key interest rates for business transactions and for overdrafts would rise by 50 basis points.
Homes used to be a lot cheaper, but in previous decades, home loan interest rates were much higher. Home loan rates are rising, however, as Reserve Bank Te Pūtea Matua has raised official cash interest rates to fight inflation.
ANZ also increased the interest paid on its Serious Saver account by 30 basis points to 1.8%.
Rates would rise on some of its other savings accounts, the bank said.
Ben Kelleher, ANZ’s director for personal banking, said households are cautious about their finances.
“Our customer data shows that people are sticking to their savings and continuing to pay off debt where they can, despite the economic uncertainty and higher cost of living,” he said.
“More than a third of customers are six months or more ahead of their home loan and savings continue to climb.”