Savers gain as term deposit rates also rise
The picture isn’t only about borrowing costs, though. Alongside its home loan changes, ANZ lifted term deposit rates by 10 to 30 basis points across terms of six months to two years, taking its six-month rate to 3.55%, which the bank said was the highest in the market, while its 18-month and two-year rates rose to 4.2% and 4.3% respectively.
Knuckey said borrowers under financial pressure should reach out early rather than wait.
“We’re here to support households and businesses and discuss the options that may be available to help,” he said.
ANZ noted that around 44% of its home loan customers were at least six months ahead on repayments, having chosen to maintain higher payments as rates fell earlier in the easing cycle.
Fixed-rate decisions grow more complex for borrowers
The rate rises complicate what has become a more difficult decision for borrowers approaching a refix, with the gap between short and long-term rates narrowing as costs rise across the curve.