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.
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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 | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
