ANZ slashes variable rates, Breakfree package gone

author-avatar By
on March 21, 2022 Fact Checked
ANZ slashes variable rates, Breakfree package gone

ANZ's longstanding 'Breakfree' packaged home loans are gone and the major bank has simplified its mortgage product line with lower interest rates.

Initially announced in February, at the weekend ANZ officially binned its Breakfree packaged home loans line.

The home loan overhaul comes after ASIC fined ANZ $25 million under the 'fee for no service' penalty.

It was found more than half a million home loan package customers failed to receive benefits such as fee waivers or interest rate discounts to the collective value of $200 million.

The Breakfree package had been around since 2003.

The simplified mortgage product line came amid a few rate cuts to standard variable home loans, including:

  • Discounted Variable Standard 80%: 140 basis point decrease to 2.99% p.a. (2.99% p.a. comparison rate*)
  • Investment Discounted Variable Standard 80%: 140 basis point decrease to 3.59% p.a. (3.59% p.a. comparison rate*)

A large range of fixed home loan rates were also cut by 15 basis points, including:

  • Residential Fixed 2 Years 80%: Now 3.09% p.a. (3.01% p.a. comparison rate*)
  • Residential Fixed 5 Years 80%: Now 4.19% p.a. (3.48% p.a. comparison rate*)
  • Investment Fixed 2 Years 80%: Now 3.29% p.a. (3.54% p.a. comparison rate*)
  • Investment Fixed 5 Years 80%: Now 4.29% p.a. (3.88% p.a. comparison rate*)

Other fixed home loan rates between one and 10 years were also slashed.

The comparison rates on fixed home loans are lower because the revert rates are lower.

ANZ executive Mark Hand said the simplified product line is easier for customers to understand.

"This is really good news for home loan customers who only want to pay for the products and features they value and choose to use," Mr Hand said in February.

ANZ is the first major bank to dump packaged mortgages, with CBA's 'Wealth', Westpac's 'Premier Advantage', and NAB's 'Choice' packaged loans still on offer.


Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.


Photo by David McKelvey on Flickr

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy