An ANZ fixed rate home loan can provide you with the certainty that your repayments won't change.
Fixing your home loan interest rate gives you the confidence of knowing your repayments will stay the same over the fixed period, regardless of market interest rate movements. ANZ provides home loans with a variety of features, and has a competitive range of fixed rate home loans.
Types of ANZ Fixed Home Loans
There are three main types of fixed rate home loans offered by ANZ. These include:
- The ANZ Fixed Rate Home Loan. This home loan offers a range of features, mentioned below.
- The ANZ Breakfree Fixed Rate Home Loan. This loan is a package loan offered by ANZ. It comes with many of the same features as the regular fixed rate home loan, but comes with rate and fee discounts in exchange for an annual fee.
- The ANZ Interest in Advance Loan. This offers most of the same features found in the other two loans, but offers a discounted interest rate in return for paying your yearly interest in advance. These loans also come with tax savings.
Things you should know about ANZ fixed rate home loans
|Flexible loan terms||ANZ offers fixed rate homes loans for one, two, three, four, five, seven and 10 year terms, with the interest rates for each of these varying. You can borrow as little as $20,000 through a fixed rate ANZ home loan, with the maximum depending on factors like your net salary, your savings and your debts.|
|High maximum LVRs||The maximum LVR for eligible existing ANZ customers is 95%, and for new customers this is reduced to 90%. If you plan to borrow in excess of 80% LVR, you'll need to pay lenders mortgage insurance (LMI).|
|Offset accounts available||ANZ's one-year fixed rate home loans come with 100% offset accounts. Offset accounts can save you on interest charges over the course of your home loan.|
|Additional repayment flexibility||You can make additional repayments on a fixed rate ANZ home loan, although if you pay your entire loan back during this term you will be required to pay early repayment fees. Once the loan reverts to the variable rate you can access any extra payments you've made through the redraw facility.|
|Interest-only options||You have the option to keep your monthly repayments down at the beginning of the loan term by making interest-only repayments for up to 10 years. If you open an ANZ Access Advantage Transaction Account, or already have one, ANZ will waive the monthly account service fee.|
|Package discounts available||The ANZ Breakfree package come with a range of discounts on fees and rates, and additional benefits. If you choose a Breakfree package with fixed rates, you'll be able to take advantage of rate discounts of up to 0.15% p.a and discounts at fixed rate maturity of up to 0.70%p.a..|
|Rate lock option||This feature locks in the rate you applied for in the event that rates rise in between application and settlement. Rate locks are available for up to 90 days on terms between one and five years, and for loans up to $1 million.|
How to compare fixed rate home loans with ANZ
The most important factor to consider when comparing fixed rate home loans with ANZ is to be aware that not every feature is available with longer loan terms. The offset account is only available with the one-year fixed term, and the rate lock isn’t available for loans fixed for greater than five years..
Also, when comparing fixed rate ANZ home loans, keep in mind that opting for a fixed Breakfree Package Home Loan will come with an extra annual fee, but will also waive the loan approval fee, valuation administration fee, loan administration charge and credit facility fee. It will also come with lower rates.
When comparing fixed ANZ home loans, rates should only be one factor. You should also compare the fees and the features on offer.
Frequently asked questions
Do I need to provide additional security?
No. When you apply for a fixed rate home loan through ANZ, the property in question serves as collateral. If you fail to make timely repayments, ANZ holds the right to sell the property and use the proceeds to repay your debt.
What is LVR?
LVR, or Loan-to-Value Ratio, is the amount you borrow compared to the value of the property. If a bank allows a maximum of 80% LVR, it basically means that it’s ready to lend as much as 80% of a property’s value, and you have to pay the remaining 20% in the form of a deposit.
What is Lender’s Mortgage Insurance?
In instances when the LVR exceeds 80%, you will be required to take out Lender’s Mortgage Insurance (LMI). This insurance serves as protection in case the borrower defaults and sale of the property results in a shortfall. Borrowers have to pay the premium that this insurance attracts.
What is redrawing and how do I use it?
If you pay extra on your ANZ fixed rate home loan, once it reverts to a variable rate loan you have the option to withdraw the additional funds. This service is free and it allows you to transfer funds into your ANZ bank account instantly.
Do ANZ fixed rate loans attract loan approval fees?
Yes, please check the fine print for these fees.
Do I have to pay any fees if I want the loan to refinance an existing loan?
While you don’t have to pay anything extra to ANZ, your existing lender might require you to pay fees linked to discharging your loan and arranging a settlement. You might also have to pay early repayment or exit fees.