Rate decision – 23rd July, 2015

Following our latest interest rate review:

The change to the Residential Investment Property Loan Index will be effective on August 10th 2015.

This decision reflects our current outlook across the key factors we consider in our reviews, including:

ANZ's interest rate review process

What criteria does ANZ use when making decisions on interest rates?

The five key criteria we base our decisions on are:

  1. Ensuring attractive returns for depositors: ANZ is committed to providing customers with competitive returns and absolute security for their savings.
  2. The cost of wholesale funding: This covers the interest we pay on funds we borrow from wholesale money markets.
  3. Our competitive position: ANZ is determined to remain competitive by attracting customers, winning business and managing our costs.
  4. The impact of market conditions on our customers: We are committed to lending responsibly and giving consideration to the financial health of our customers, the economy and the banking system in Australia.
  5. Regulatory requirements: As a bank, ANZ works within a strong prudential and regulatory environment. For example, we must hold capital reserves and levels of liquidity to operate safely and securely for customers.

Communicating these criteria helps us better explain our future decisions on interest rates to customers.

What products/services are covered by your decision?
The interest rate review applies to variable interest rate home loans and residential investment loans.

How does this affect customers?

As an ANZ customer, how does this affect me?

If there are any changes to variable home loan or residential investment loan rates, we will tell you and you can make a choice about how you make your repayments. For example, if interest rates go down, you can choose to do nothing and keep paying the same amount and pay off your loan quicker. Or you can choose to reduce your payment.

We will continue providing you with competitive interest rates, innovative products and flexible options to give you confidence and control over your finances.

You will be notified of any change to interest rates in the usual way which depending on your type of loan, may include a letter in the mail, information on your account statement, on anz.com, in our branches or from our Contact Centre; changes will also be advertised nationally.

If rates change will my repayments change automatically?

If  you make your payments via an ANZ deposit book, you can visit the nearest ANZ branch.

  • the new minimum repayment amount
  • when it will take effect
  • any action you are required to take.

Depending on loan type and the method by which you usually make repayments, your repayment may be automatically changed. You will be notified if this is the case.

If you wish to change your loan repayments yourself at any time, you can do so as follows:

If you make your payments via a Direct Loan Payment from an ANZ account, adjustments can be made via Internet Banking or by calling 13 25 99 8am to 9:30pm (AEST), Monday to Friday.

If you make your payments via a transfer from an account held at another financial institution, or by salary deduction through an employer, you will need to provide instructions to your financial institution or your employer to change repayments to reflect the new minimum repayment amount.

If you make your payments via an ANZ deposit book, you can visit the nearest ANZ branch.

If there is a rate change, when will the interest rate change take effect?

ANZ will announce the effective date at the same time as we announce the change in rate.

What can I do if I’m having difficulty making my repayments?

Please contact us so we can review your situation and explore the available options. More information can be found at our dedicated Hardship online site on anz.com.

Doesn't this demonstrate a lack of competition in the banking industry?

The Australian market is highly competitive, which can be seen in the difference between the variable interest rates of banks.

In addition to the major banks, there are over 100 other home loan providers in the market, offering a total of more than 500 home loan products. 

If there are any changes, we will tell you and you can make a choice about how you make your repayments. For example, if interest rates go down, you can choose to do nothing and keep paying the same amount and pay off your loan quicker. Or you can choose to reduce your payment.

We will continue providing you with competitive interest rates, innovative products and flexible options to give you confidence and control over your finances.

You will be notified of any change to interest rates in the usual way which depending on your type of loan, may include a letter in the mail, information on your account statement, on anz.com, in our branches or from our Contact Centre, changes will also be advertised nationally.

How do you provide competitive rates for customers and shareholders?

As a bank with more than 6 million Australian customers, we need to make sure we balance the needs of both borrowers and depositors. This means providing competitive and affordable interest rates, innovative products and flexible options that give customers confidence and control over their finances.

As one of Australia’s top five listed companies, we also have a large and diverse shareholder base, including retirees and superannuation holders, who rely on ANZ to deliver a competitive return on their investments.

To do this on a consistent basis means we need to attract customers, win business, manage our costs and remain competitive in the market.

The market is highly competitive, which can be seen in the difference between the variable interest rates of banks. In addition to the major banks, there are over 100 other home loan providers in the market, offering a total of more than 500 home loan products.

 

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