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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Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
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5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
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6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
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Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Photo by David McKelvey on Flickr





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