ANZ Bank has followed rivals in pushing up variable interest rates for property investors, blaming higher funding costs and its obligations to regulators.
The bank on Friday said property investor borrowers would face a 0.08 percentage point increase, with its benchmark rate for these customers increasing to 5.6 per cent.
Bendigo and Adelaide Bank also raised variable rates by 0.1 percentage points on Friday, changing rates for owner occupiers as well as investors.
The moves follow similar rises this week from National Australia Bank, Westpac, Suncorp and ING Direct, with all of the lenders also a pointing to a lift in their cost of funds.
After a political backlash against banks following their skinny interest rate cuts in August, ANZ did not increase interest rates for owner-occupiers, a move that would probably reignite the political attacks on banks.
Banks' profit margins from housing lending have in recent quarters been squeezed by record low interest rates, prompting lenders to attempt to claw back profits through their lending to property investors.
"Despite residential investor rates remaining at historic low levels, this was a difficult decision that took into account increases in our funding costs and our regulatory obligation to manage a balanced portfolio," the head of ANZ's Australian arm, Fred Ohlsson, said in a statement.
The hikes follow a rise in bond yields, which can raise banks' costs, and recent strength in lending to property investors as house price growth accelerated in Sydney and Melbourne.
Under rules designed to prevent the property market from overheating, Australian lenders are subject to a 10 per cent a year cap on their housing investor loan growth.
"Customers concerned about the long-term direction of interest rates are able to take advantage of our competitive fixed rates that remain unchanged for both investors and owner-occupiers," Mr Ohlsson said.
