Lock in a fixed rate and enjoy repayment security on your home loan.
With a competitive fixed rate, you can know exactly how much your home loan will cost you over the fixed term. This allows you to plan ahead with confidence and accuracy. The ANZ Breakfree Home Loan Package Fixed gives you the choice of locking in a variety of different rates from one year to as many as 10. It also allows you to borrow up to 95% of your new home's value and combines your loan, bank account and credit card into one convenient package allowing you easy manageability of your finances. As a result of moving your banking over to ANZ, you'll be rewarded with rate discounts and discounts on some fees.
For home-buyers who would prefer not to fix their rate, ANZ also offers a similar package with variable interest rates. If repayments that fluctuate do not concern you than this home loan might be worth considering.
|Product Name||ANZ Breakfree Package Home Loan Fixed|
|Interest Rate Type||Fixed|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$150,000|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||95%|
|Mortgage Offset Account||Yes|
|Mortgage 100% Offset||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$0|
|Ongoing Fees||$395 p.a.|
- No application, settlement and discharge fee
- Annual service fee of $395
Things to consider about the ANZ Breakfree Home Loan Package Fixed
The ANZ Breakfree Home Loan Package Fixed is a full documentation loan, meaning you must be able to supply the full range of income evidence including payslips, bank statements and more.
ANZ does have low doc options, but these have more restrictive maximum LVRs and other conditions. You can compare other low doc loans also if you're self-employed or can't otherwise prove your income.
As mentioned, this loan is a package home loan. It offers a rate discount and fee waivers in exchange for you moving your banking to ANZ and also paying an annual fee.
Features of the ANZ Breakfree Home Loan Package Fixed Rate
- Loan-to-Value Ratio (LVR). For customers new to ANZ, you can borrow up to 90% of the home’s value. Existing ANZ customers are allowed up to 95%. The minimum amount you may borrow with these terms and rates is $150,000.
- Loan terms. For the fixed rate portion of this loan you can choose terms between one and five years, or a seven or ten-year term. The overall loan can be spread out over 30 years.
- Repayment frequency. You have the choice of weekly, fortnightly or monthly repayments, enabling you to match your home loan to your salary.
- Repayment types. You are allowed the option of interest-only repayments for up to ten years with this loan. You may also make additional repayments during the fixed rate period so long as they total less than 5% of the loan or $5,000 annually, whichever is less. You could incur an early repayment cost if you exceed these amounts.
- Redraw. Once your loan reverts to the variable rate you are able to redraw any extra repayments you have made.
- Offset account. A 100% offset account is only available if you choose the one-year fixed rate option. An offset account is a linked transaction account, in which any funds deposited into it can offset the interest on your home loan, saving you over the course of your home loan.
Fees you can avoid
- Loan approval fee. $600.
This fee is waived as part of the Breakfree Package. ANZ usually charges it for the preparation of your loan paperwork.
- Rate lock fee. $750.
This fee is charged in the event that you wish to lock in the advertised rate at the time of application for up to 90 days. This guarantees you will receive the advertised rate you apply for, rather than the possibility of a less favourable rate in the time taken for your loan to settle.
- Valuation fee.
Included in the home loan package is the valuation of the property at no charge to you.
- Loan administration charge. $10 per month.
The Breakfree Package waives this monthly fee.
Fees you can’t avoid
- Annual fee.
A $395 charge will be added to your account each year that your loan is open.
Know how much you want to borrow? Use our calculator to find out what your repayments will be
How to apply for the ANZ Breakfree Home Loan Package Fixed Rate
If you are considering applying for this home loan package, first ensure that you meet the eligibility requirements:
- Have at least one eligible ANZ transaction account.
- Be approved for at least one eligible ANZ loan product that has a balance or credit limit of no less than $150,000.
- Be approved for an ANZ credit card.
You will be asked to answer a few questions about the purpose of the loan and the property you are planning to use as security. You will also be asked to give a phone number and good time that you can be reached. After reviewing this initial information, a loan officer will contact you to help you get started on the rest of the application.
A low fixed rate during those first few years can be helpful in learning how to budget with your new house. When comparing other loans you may find that even though the rates are not as low, they do come with additional features. Compare the costs and features carefully before making a final decision.
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ANZ Breakfree Home Loan Package Fixed Interest Rate History vs RBA Cash Rate Graph
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