ANZ is the only Big Four Australian bank to not make exceptions in stress testing when refinancing loans

 
It’s no surprise that the RBA’s recent interest rate hikes are placing huge strain on mortgage holders.

But there’s plenty of room for Aussie banks to help, or not help, stressed borrowers.

But not all banks are on the same page.

The National Australia Bank just became the third of the Big Four to make exceptions to stress-testing standards for borrowers attempting to refinance.

This now leaves just ANZ as the outlier among that group.

ANZ is set to diverge from its competitors regarding mortgage stress-testing rules, as it believes that relaxing lending criteria for refinancing borrowers would have little impact and be merely a marketing exercise.

The stress-testing standard, which requires lenders to assess borrowers’ repayment capacity at interest rates 3 percentage points above the market rate, remains unchanged at ANZ.

Sources suggest that ANZ views the current buffer as suitable given the economic climate and is satisfied with its mortgage book growth.