Guide to ANZ home loans

ANZ – Australia and New Zealand Banking Group – is one of the oldest banks in Australia, having formed as the Bank of Australasia in 1835 in Sydney. It’s one of the five largest companies in Australia by market capitalisation and in the top four for assets under management at nearly $1 trillion. In 2016 it was the first bank in Australia to bring Apple Pay to its customers. Together with its subsidiaries, the major bank employs more than 50,000, and has 570 branches in Australia.

What home loans does ANZ offer?

The lender has home loans available for many types of borrowers, including first home buyers, refinancers and investors. Its mortgage products can be sorted into fixed and variable rate loans with either principal and interest or interest-only repayment options. ANZ also offers a line of credit home loan and land home loans. It is also one of the very few lenders to offer 10-year fixed rate home loans.

As a large bank, it also offers a variety of car & personal loans, credit cards, savings accounts, term deposits and much more.

See some of ANZ’s home loans for owner occupiers and investors in the table below:

ANZ mortgage features

As one of Australia’s most popular lenders, it’s no surprise that ANZ offers a wide variety of home loan features:

• Small deposits: This allows you to borrow up to 95% of the property’s value

• Offset accounts: Certain products, like the ANZ Breakfree Package, come with a 100% offset account

• Redraw facilities: ANZ also offers a fee-free redraw facility on its Simplicity Plus product

• Package loans: ANZ allows you to open ‘packaged’ home loans that come with a variety of other products in exchange for a package fee, including credit cards and transaction accounts

• Split loans: You can split your loan between fixed and variable to get the best of both worlds

• Extra repayments allowed: This allows you to make both extra repayments and more frequent repayments, which can result in your loan being paid off sooner with less interest

ANZ Breakfree Package explained

Note: ANZ will remove 'Breakfree' package home loans from its product line for new customers from March 2022.

ANZ’s longstanding Breakfree package for an annual fee comes with a few distinct benefits. The package offers interest rate discounts, fee waivers on eligible loan accounts including scrapping the loan approval fee, valuation fee, renegotiation fee, and loan admin charge.

Other product benefits include:

• Annual account fee waived on one eligible ANZ credit card with additional cardholder fee also waived.

• Choice of ANZ Access Advantage or ANZ One offset account with monthly service fee waived.

• Apply for ‘ANZ Assured’ overdraft facility of $500 or $1,000 on above offset accounts.

• First-year premium discounts on ANZ home, landlord or car insurance policies.

• Discounts on ANZ financial planning or one-off adviser services.

There are also no limits on the number of eligible home loans under the one package, and there’s the choice of a variable or fixed loan.

ANZ home loan pre-approval

A home loan pre-approval can give you an idea of how much a lender will let you borrow, which can help with budgeting. ANZ offers pre-approval on the majority of its home loans and you can apply online, at a branch, or by speaking with a lending specialist. You’ll need to provide:

• 100 points of ID (drivers licence, passport, Medicare card etc.)

• Proof of income and employment

• Lists of expenses and debts

• A dollar amount you’d like to borrow

Pre-approval is typically much quicker than a full approval but the time is dependent on your individual circumstances. ANZ pre-approval lasts for three months, which is typical among home loan lenders.

How to apply for an ANZ home loan

Eligibility criteria

Firstly, you need to make sure you meet ANZ’s lending criteria:

• You are over 18 years old

• You are an Australian or New Zealand citizen or permanent resident

• Your primary income is in Australian dollars

• The property being purchased is the only property to be used as security for the loan

If you meet all of these, then you have a few methods of applying for an ANZ home loan:

1. You can apply online with ANZ

2. You can call an ANZ specialist

3. You can visit an ANZ branch

4. You can contact a mortgage broker

You can also apply for home loan pre-approval with ANZ, so you know what you’re allowed to borrow before going house hunting.

Documents needed

Once you’re confident and ready to apply, you’ll need the following documents at the ready:

• 100 points of ID (drivers licence, passport, Medicare card etc.)

• Proof of income documents (your most recent payslips or one-year of tax returns if you’re self-employed)

• A detailed breakdown of your living expenses

• Details of other income (share statements, dividends, Centrelink statements, rental income etc.)

• Details of your assets and liabilities (such as other loans and credit cards)

• Property purchase details if you have them (contract of sale, proof of property insurance etc.)

• Home loan statements for those refinancing

• First Home Owner Grant documentation, if you’re using the grant towards your deposit

Photo by Joe Caltiere on Unsplash

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