Second Home Mortgage Rate
ANZ joins rivals in rates rise
ANZ Bank has increased its home loan interest rates, becoming the last of the major banks to pass on this week's rise in official rates.
The bank says it will increase interest rates for a range of key deposit and lending products by 25 basis points following Reserve Bank of Australia's (RBA) 25 basis point rise in interest rates to 6.0 per cent this week.
Effective Monday, the interest rate on ANZ's standard variable rate home loan will increase to 7.82 per cent for new and existing customers.
ANZ's other variable rate mortgage products will also increase by 25 basis points effective from Monday.
Money Saver rates lift to 7.22 per cent, Equity Manager to 7.82 per cent and Home Equity to 8.32 per cent.
"This is the second increase in official rates this year which inevitably places additional pressure on household budgets," ANZ group managing director personal Brian Hartzer said.
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Piggybacking Onto Trouble
Wall Street is sounding the alarm on one of the most popular ways to buy a house in many high-cost areas around the country -- "piggyback" programs that mesh first-lien mortgages and second-lien credit lines or mortgages that close simultaneously.
As of July 1, the most influential ratings agency in the mortgage arena, Standard & Poor's Corp., has upped the ante for lenders who seek to fund piggyback deals through capital market financings. The move is likely to raise interest rates and fees for some home buyers this summer, say mortgage experts, and could reduce the volume and availability of piggyback programs overall.
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