Hear that? That little cracking sound? As Sydney auction listings plummet and Fitch downgrades their outlook for Aussie banks, there’s some more interesting news to start the 2017 specufestor bonanza!
Two of the arms of Megabank, NAB and ANZ are lifting interest rates on their fixed rate mortgages. From Fairfax:
Two of the big banks have hiked fixed interest rates on home loans, and a senior banker at National Australia Bank says funding costs that drive variable interest rates “remain elevated.”
National Australia Bank on Monday said it would hike interest rates on two, three and four year fixed interest rates, following a round of hikes from ANZ Bank that took effect late last week.
NAB’s two year rate will lift by 23 basis points to 3.98 per cent, its three-year rate will rise 20 basis points to 4.09 per cent, and its four-year rate will jump 60 basis points to 4.59 per cent.
On Friday, ANZ increased rates on two-year loans by 23 basis points to 3.9 per cent, and three-year loans 4 per ent. ANZ reduced its four year fixed rate by 10 basis points to 4.74 per cent.
The banks are hiking rates for both owner-occupier loans and loans for property investors. Even so, there has been speculation among analysts that banks may also increase their variable interest rates that most borrowers pay in 2017, in response to higher funding costs.
The bottom line must be defended!