ANZ Home Loan: Main Features and Application Tips

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If you’re in the market for a home loan and want to know more about the ever popular ANZ home loan, this article will provide a good overview. 

The Australia and New Zealand Bank (ANZ) is the third-largest bank in Australia by market capitalization. With over $300 billion in home lending, it’s evident that ANZ is a viable option for many people looking for home loans.

If you’re in the market for a mortgage, then it’s worth looking at ANZ home loans to learn more about their fees and features. For first-time home buyers, you don’t have to worry about the process as the bank offers assistance through a support coach at no cost.

Understanding the home loan products ANZ offers can make the application process smooth. Here’s what you need to know.

Who Is Eligible for a Home Loan?

You can easily apply for ANZ home loans online, but there are several eligibility requirements every applicant must meet:

  • You must be at least 18 years old
  • Applicants must be Australian or New Zealand citizens or permanent residents
  • Your income should be in Australian dollars
  • The property you want to buy should be the only one to secure the loan

You’ll also need to provide your driver’s license for identity verification and financial details, such as expenses, assets, income, and debt. If you have an ANZ account number, you can also provide it.

Loan Options

ANZ has three home loan options, which have different features, benefits, and terms.

ANZ Standard Variable

For a flexible loan option, ANZ Standard Variable is the ideal pick. It offers a loan term of one to 30 years, and you can make your repayments weekly, fortnightly or monthly. You’re also free to make extra payments to pay off your loan quickly.

The interest rate is 4.79 percent, and it comes with an approval fee of $600.

This loan also has a redraw facility, which lets you withdraw your extra repayments in case of an emergency. It’s also possible to get interest-only repayments depending on the agreed term: 5 years for home buyers and ten years for residential investors.

ANZ Fixed

If you want something that has predictable repayments, the ANZ Fixed loan is the way to go. For this option, the interest rate varies depending on the loan term and the type of property you want to buy. Generally, the rates range from 3.40 percent to 7.70 percent.

The bank offers 1 – 5, 7, and 10-year fixed-rate terms with a maximum overall term of 30 years, and you can choose to make repayments weekly, fortnightly, or monthly. You also get interest-only repayments for five years.

This loan has an approval fee of $600 with a minimum loan amount of $20,000.  You can also lock in your rate at a fee of $760 if your loan is $1,000,000 with a term of 1 to 5 years.

ANZ Simplicity Plus

The ANZ Simplicity PLUS home loan is ideal for people who want to avoid ongoing fees. Still, you can choose how you want to make your repayments: weekly or monthly.

If you have an emergency, you can also redraw your extra repayments. However, for this loan, only residential investment loans have the interest-only repayment feature. The minimum loan amount is $50,000, and the maximum loan term is 30 years.

The interest rate is 4.14 percent. But, you can get a special rate of 3.24 percent is you borrow less than 80 percent of the property value and 3.58 percent if you borrow more than 80 percent of the property value.

What Do I Need to Qualify for a Home Loan in Australia?

As long as you meet the eligibility requirements and provide the needed details, you’re on the right track to qualify for a home loan.

But they’re more details involved in the process, particularly your credit score. You’ll need to ensure you have more than a good rating to improve your chances of getting rates below 3 percent. Also, consider the property you want to buy as other lenders might not accept inner-city apartments.

If you’re getting a joint loan, take the time to think about your relationship with the other party. Any change in your relationship can complicate things for both of you.

Final Thoughts

After applying for the loan, you should receive your response within two to three business days.

Anz Home Loan products are some of the competitive options in the country thanks to their exceptional features like a redraw facility and offset account. Be sure to compare the three loan types the bank offers to determine the options that work for you best.

If you can’t decide between a fixed and variable rate, the bank allows you to split the loan between the two rates. It can be 50-50 or any ratio that works for you. Also, it’s worth comparing AZN home loans to other loans on the market.

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