flagFounded: 1835, became known as ANZ in 1951
businessOwned by: ASX Listed
monetization_onFunded by: Retail deposits and wholesale capital markets
securityLMI Provider: ANZ LMI
account_balanceLender type: Major Bank
ANZ is one of Australia’s four major banks and one of the top 50 banks in the world. They’ve been a leader in the home loan market for some time, in particular because of their success with mortgage brokers.
ANZ focuses on the mass market so has low risk loans that suit most home buyers and investors while their Australia wide branch network gives easy access to customers that want to deal with someone face to face.
How do ANZ’s home loans compare?
They’re great at
- Guarantor loans for first home buyers
- Refinancing an existing home loan
- You can get a bank valuation up front before applying
- Construction loans
- Special discounts for doctors and medical professionals
- Working with existing ANZ customers
- Working with mortgage brokers
- People who want to deal with their lender through a branch
But they’ve got some drawbacks…
- Borrowing over 90% of the property value is tough if you aren’t an existing borrower
- Pedantic with assessing living expenses
- First home buyers with a low deposit
- People with a bad credit history
- Self-employed borrowers who cannot prove their income
- Their borrowing power calculator is unnecessarily complex which causes many bank staff and mortgage brokers to make errors when calculating your borrowing power
- Their credit scoring is tough and you may get declined for no apparent reason
- As they’re a major bank you may feel like just a number
What home loans types do they have?
ANZ is well known for their breakfree package which is a great option for loans over $250,000. This package gives you a rate discount, waived fees on your cheque account and credit card as well as waived application fees. You’ll need to pay an annual fee but this is usually much less than the savings you receive from the package.
For smaller loans many people choose their Simplicity Plus loan which doesn’t have an offset account but also doesn’t have an annual fee.
ANZ also has a line of credit known as their Equity Manager and also Fixed rate home loans.
ANZ mortgage relief: Is ANZ freezing mortgage repayments?
Yes, ANZ customers affected by the coronavirus (COVID-19) can put their home loan repayments on hold for up to six months.
If you freeze your mortgage repayments, ANZ will check in with you in three months to reassess your situation.
Remember that during this repayment break, interest on your home loan as well as any fees continues to accrue and is added to your home loan balance.
Alternatively, ANZ customers may be able to reduce their mortgage repayments by switching to interest only repayments, and/or access funds in their redraw and offset accounts.
Expect delays up to seven days to process requests for repayment deferrals
Due to a significant volume of calls and requests for repayment deferrals, ANZ has announced that there may be delays of up to seven days to process your requests.
ANZ customers will start receiving confirmation that they’ve received their assistance request, and regular communications via SMS and email from ANZ until their request is handled.
If you can, continue to make your regular loan repayments. If you can’t make a repayment, have missed a repayment or will miss a repayment since you have submitted your assistance form, it’s okay. There may be an outstanding amount owing on your account but this is temporary until ANZ processes your request. It will not impact your credit rating and ANZ won’t be contacting you to chase the missed repayment.
Tips for getting a great rate with ANZ
What most people don’t know is that ANZ can offer better interest rates than those that they advertise!
Most mortgage brokers like us will negotiate with the bank before submitting your loan application. Depending on the size of your loan, size of your deposit and ANZ’s current cost of funds, you may be able to snag an incredible discount.
It’s very much a moving target, in some cases the same scenario will get different pricing just one day apart. That’s why we normally ask for pricing with more than one bank to make sure our customers get the best deal.
Use ANZ Bank’s Loan Application Cover Sheet to prepare for your home loan application.
Note: This is the latest loan application document as at November 2017. Please refer to ANZ for their most up-to-date document requirements.
ANZ client story: Omer, Vic
- To qualify for an off the plan home loan with settlement just 2 weeks away.
Two years ago, Omer and his wife put down a 10% deposit on an off the plan unit as an investment.
The problem? By the time settlement came around, Omer’s situation had changed dramatically.
Firstly, he and their wife just had their first child and she was on maternity leave.
Secondly, Omer switched from working as a full-time PAYG IT worker to a contractor to earn a higher salary to support his family.
On top of that, servicing, or proving to the bank that he could afford the mortgage repayments on a $412,000 home loan, was going to be extremely difficult because most banks would only take into account Omer’s income and wouldn’t include his wife’s maternity leave pay.
Even though Omer’s family was able to provide the couple with a gift to go towards their deposit and reduce their LVR to 80%, serviceability was still going to be the issue to stop him from getting a loan.
We were able to get Omer’s off the plan loan approved with ANZ by explaining that even though Omer had switched from full time to contract work, he was still with the same company he had been with for the past 3 years, he was doing the same IT work, and there was no break between changing roles.
Now that ANZ had accepted Omer’s employment situation, they were also able to consider 100% of his wife’s maternity pay income because she was able to provide 3 consecutive payslips prior to taking leave and a letter from her employer stating that she would be returning to work in the same role and has a full-time employee.
Thanks to the relationship we have with ANZ, we were able to submit the application the next day and reach settlement within a week.
Compare ANZ to other lenders
Not sure which lender is right for you? Not sure which ANZ home loan you should choose? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.