ANZ Property Investment Loans | Experts’ Review

How Does An ANZ Investment Loan Compare?

ANZ is one of the largest banks in Australia and is a good option for getting property investment loans. Whether it’s the best option for you depends on your specific circumstances.

Listed below is all the information you need on ANZ investment lending to guide you in making an informed decision.

The good:

  • Offers competitive investment loan rates compared with other banks
  • Conducts fully assessed pre-approval
  • Possesses Delegated Underwriting Authority (DUA) for loans of up to $1.25 million (can be higher in individual cases)
  • Accepts a higher Debt-to-Income (DTI) ratio than most major lenders
  • No genuine savings requirement for investors
  • Requires investors to present only a single year’s tax returns and Notice of Assessment (NOA)
  • Calculates negative gearing using the actual interest rate and not the assessment rate (interest rate + buffer)
  • Accepts non-resident investors on Medium and Long-term Strategy (MLTSSL) and 457 visas
  • Factors in all types of work-related allowances while calculating an investor’s borrowing power
  • Accepts guarantor‘s property as security
  • Offers good cashback on refinances
  • Exclusive interest-only repayment option for loans with Loan-to-Value Ratio (LVR) less than 80% and a term of less than 5 years
  • Flexible credit policy for high-net-worth investors taking a loan of up to $1.5 million or keeping security that is worth above $3 million
  • Favourable policy for customers who have held a separate ANZ lending product for at least six months

The bad:

  • When compared with some non-bank lenders, its investment loan rates aren’t as competitive
  • High assessment rate buffer that lowers your borrowing power
  • Factors in only 80% of overtime and bonus income while calculating serviceability
  • Factors in only 75% of rental income while calculating serviceability
  • Offers only up to 90% LVR, including LMI
  • Does not offer common debt reduction for joint debt
  • Does not accept bad credit loans
  • Does not accept Airbnb income

Foreign income assessment policy:

  • If the foreign income is taxed overseas, net income is to be used while calculating the serviceability of the loan
  • If the foreign income is not taxed overseas, gross income is to be used

What Are The Different Types Of ANZ Investment Loans?

Some of the common types of home loans ANZ provides are:

The bank does not offer any home loan packages, but it gives you a choice to add extra features to any loan product for a price. So, instead of paying a package fee for multiple features, you get the flexibility to pay for only the features you want.


Below are ANZ’s most popular investment home loan products.

ANZ Standard Variable Residential Investment Loan

This is ANZ’s most flexible home loan product.

Features include:

ANZ Fixed Residential Investment Loan

This product is a standard fixed-rate loan. You can add variable-loan features to it by paying a certain amount.

Features include:

  • Fixed-rate loan term of up to 10 years
  • No change in interest rate throughout the fixed period
  • Discounted interest rate without a package fee
  • No set-up or ongoing fees

ANZ Simplicity PLUS Residential Investment Loan

This is ANZ’s basic variable-rate home loan product.

Features include:

  • Discounted interest rate
  • Redraw account
  • No set-up or ongoing fees

Converting An Owner-Occupier Loan to An Investment Loan

If you plan on converting your owner-occupier loan to an investment loan, ANZ usually requires you to go through with a new lending application. However, filling out a simple declaration form and presenting proof of address change is an option for some straightforward cases.


ANZ Property Investment Loan – Client Story

Matthew, NSW

Goal

To purchase an investment property through pre-approval as an expat.

Background

Matthew is an Australian expat who has lived in the Netherlands with his wife for almost six years. The couple has managed to purchase their own home there, and since both of them hold high-paying positions in a reputable organisation, they don’t intend to leave the country any time soon.

Having held a stable job for half a decade, Matthew decided on diversifying his income source. He did a little digging and that’s when he concluded that property investing in Australia was his safest option. He knew he wanted to mortgage his investment property ,since all he had to do was put in a certain portion from his pocket, the rent would cover his repayments, and he’d be left with a decent side income.

The only problem with getting a home loan was that Matthew would have to go through a tedious lender selection and loan application process, for which he had no time to spare. Most importantly, if there were any complications in the process, flying down to Australia for sorting them wasn’t a viable option.

Solution

Matthew started searching for a solution, and that’s when he found us. We quickly assembled a team of experts for him, with one of our finest brokers leading the loan submission.

Here’s what our team did to get his investment property loan to settlement:

  • Found him his top match for lenders. Of the five options, he chose ANZ as it gave him the best deal in terms of interest rate and features.
  • Filled out all the paperwork on his behalf.
  • Liaised with ANZ’s team to ensure they met their Service Level Agreement (SLA) for each step in the mortgage application process.
  • Gave Matthew frequent updates on any developments in the loan process.
  • Proved his application was low-risk, referencing his strong serviceability, stable income and employment reflected through his payslips, and clean credit history.
  • Convinced ANZ to take a conservative approach while assessing one of his credit card liabilities.
  • Helped him transfer his money from the Netherlands to an ANZ account to support the purchase.

Matthew eventually took out a split loan for purchasing an investment property worth $2.95 million. The first loan split was for $400,000 at a discounted annual variable rate of 3.05%. The second loan split was for $1.4 million at a three-year fixed rate of 2.49%. The broker got him a split loan as it allowed him to access features available with both variable and fixed-rate loans without having to pay for them individually.

With a policy-strict bank such as ANZ, our broker still managed to get him a fast pre-approval by convincing the bank to take a conservative approach towards minor concerns. Matthew was able to get the best deal possible without putting in 100% of his time and effort towards acquiring the loan. The same wouldn’t have been the case if a broker wasn’t there to back him up.


Compare ANZ Investment Loans To Other Lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our award-winning mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.

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