ANZ lifted fixed home loan rates

ANZ became the first of the big four banks to raise fixed home loan rates in March 2012 although it kept the interest rate on its variable mortgage steady.

In a further sign that the banks are moving independently from the RBA,  ANZ has lifted some of its fixed rates, including its residential three-year fixed package, which is its most popular among home borrowers, by 20 basis points to 6.34 per cent.

This follows the bank announcing only last month that it was lowering its three-year packaged rate by 15 basis points to 5.99 per cent.

The increase will cost new ANZ borrowers who take out the loan an extra $440 a year on the average $300,000 mortgage.

Suncorp also lifted its fixed rates today while the Bank of Queensland increased borrowing costs hours after the RBA’s announcement on Tuesday.

Suncorp Bank lifted its two-year fixed home loan rates by 16 basis points today to 6.14 per cent.

RateCity CEO Damian Smith said the fixed rate increases did not indicate the two lenders would lift their variable rates.

“Fixed rates don’t follow the RBA cash rate as closely as variable rates so this is no indication that ANZ and Suncorp will lift variable rates,” Mr Smith said.

“But with lenders stating continued pressure on funding costs, it’s likely there will be more variable rate hikes.

“Borrowers should expect several small 10 basis point movements from their lenders over the course of the year.”

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