ANZ’s out-of-cycle interest rate cut
One of David & Partners major lenders ANZ Australia, has today announced an out-of-cycle interest rate cut for owner occupiers and investors.
The lending giant announced the variable interest rates for owner occupiers paying principal and interest will fall by five basis points to 5.2 per cent.
Investors paying principal and interest will also see a five basis point reducing their variable rate to 5.8 per cent.
The decision comes just days after the Reserve Bank of Australia kept the cash rate on hold at 1.5 per cent.
In a memo issued by the bank’s group executive officer Fred Ohlsson, he said the drops in variable rates for customers paying principal and interest will benefit a huge amount of their customers.
“While we know those only paying interest on their loans will be disappointed, we need to manage our regulatory obligations and we are now required to hold additional capital against our home loans,’’ he said.
“We also need to better balance our portfolio towards those paying off their homes.”
He said the changes were not in response to the recently announced bank levy and the bank was still determining the final impact of the tax.
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