ANZ

Fixed Rate Investment Loan

Advertised Rate

7.64

% p.a

Fixed - 10 years

Comparison Rate*

7.05

% p.a

Maximum LVR
80%
Real Time Rating™

1.23

/ 5
Monthly Repayment

$2,244

based on $300,000 loan amount for 25 years at 7.64%

Advertised Rate

7.64

% p.a

Fixed - 10 years

Comparison Rate*

7.05

% p.a

Maximum LVR
80%
Real Time Rating™

1.23

/ 5
Monthly Repayment

$2,244

based on $300,000 loan amount for 25 years at 7.64%

Calculate your repayments for this loan

I'd like to borrow

$

Loan term

years

Your estimated repayment

$2,244

based on $300,000 loan amount for 25 years at 7.64%

ANZ home loans are available through brokers who can help find the right loan and manage your application at no charge.

John Fulford

5.0
3 Reviews

Get expert advice from a home loans specialist.

John enjoy’s helping people achieve their goals and has a passion for property. For 2 years now at Newcastle Finance Brokers he has been helping people find the best products and loans to suit his clients. John holds his Cert IV and Diploma in Finance & Mortgage broking. You can contact John via email john@newcastlefinancebrokers.com.au or call on 0412282330.

Response time: in 33 minutes | Our brokers call during business hours between 9.00am to 6.00pm.

Christopher Godwin

5.0
36 Reviews

Get expert advice from a home loans specialist.

Christopher Godwin is an experienced mortgage broker based in Sutherland Shire New South Wales. He has a long track record of helping first home buyers and investors. He is a specialist in land and construction loans.

Response time: in 31 minutes | Our brokers call during business hours between 9.00am to 6.00pm.

Martin Baburi

5.0
5 Reviews

Get expert advice from a home loans specialist.

I have more than ten years experience in finance. Have passion and commitment in my role as a finance broker, showing professionalism and a prompt service, a high level of presentation and self - confidence. Approachable, Organized , willing to go the extra mile for my customers in achieving their financial goals, Flexible in meeting my customers needs and wants, Love to be part of my customers journey in creating the best financial profile.

Response time: in 31 minutes | Our brokers call during business hours between 9.00am to 6.00pm.

Promoted

Pros and Cons

    • Limited extra repayments
    • No redraw and no offset
    • Higher than average interest rate
    • Loan reverts to higher rate after fixed period

    ANZ Features and Fees

    Details

    Maximum LVR

    80%

    Total Repayments

    Interest rate type

    Fixed - 10 years

    Borrowing range

    Suitable for

    Investors

    Loan term range

    1 - 30 years

    Principal & interest

    Interest only

    Applicable states

    ACT, NSW, NT, QLD, SA, TAS, VIC, WA

    Make repayments

    Fortnightly, Monthly, Weekly

    Features

    Extra repayments

    Yes - limited to $5000 per year

    Redraw facility

    Split interest facility

    Loan portable

    Repayment holiday available

    Allow guarantors

    Available for first home buyers

    Fees

    Total estimated upfront fees

    $910

    Application fee

    $600

    Valuation fee

    $150

    Settlement fee

    $160

    Other upfront fee

    $0

    Ongoing fee

    $10 monthly

    Discharge fee

    $160

    Application method

    Online

    Phone

    In branch

    Other Restrictions

    Only 1 year fixed has offset account

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    FAQs

    What is a fixed home loan?

    A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

    What is 'principal and interest'?

    ‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.

    By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.

    Does Australia have no cost refinancing?

    No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

    Will I have to pay lenders' mortgage insurance twice if I refinance?

    If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

    If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

    Is there a limit to how many times I can refinance?

    There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

    However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

    Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.

    Will I be paying two mortgages at once when I refinance?

    No, given the way the loan and title transfer works, you will not have to pay two mortgages at the one time. You will make your last monthly repayment on loan number one and then the following month you will start paying off loan number two.

    If I don't like my new lender after I refinance, can I go back to my previous lender?

    If you wish to return to your previous lender after refinancing, you will have to go through the refinancing process again and pay a second set of discharge and upfront fees. 

    Therefore, before you refinance, it’s important to weigh up the new prospective lender against your current lender in a number of areas, including fees, flexibility, customer service and interest rate.

    Can I refinance if I have other products bundled with my home loan?

    If your home loan was part of a package deal that included access to credit cards, transaction accounts or term deposits from the same lender, switching all of these over to a new lender can seem daunting. However, some lenders offer to manage part of this process for you as an incentive to refinance with them – contact your lender to learn more about what they offer.

    What are the different types of home loan interest rates?

    A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan. 

    Having understood what are home loan rates in general, here are the two types you usually have with a home loan:

    Fixed rates

    These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.

    Variable rates

    With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments. 

    How do I refinance my home loan?

    Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

    Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

    When should I switch home loans?

    The answer to this question is dependent on your personal circumstances – there is no best time for refinancing that will apply to everyone.

    If you want a lower interest rate but are happy with the other aspects of your loan it may be worth calling your lender to see if you can negotiate a better deal. If you have some equity up your sleeve – at least 20 per cent – and have done your homework to see what other lenders are offering new customers, pick up the phone to your bank and negotiate. If they aren’t prepared to offer you lower rate or fees, then you’ve already done the research, so consider switching.

    When does Commonwealth Bank charge an early exit fee?

    When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

    The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

    • If you switch your loan from fixed interest to variable rate
    • When you apply for a top-up home loan
    • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
    • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

    The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

    When do mortgage payments start after settlement?

    Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

    Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

    Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

    What are the features of home loans for expats from Westpac?

    If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

    The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

    Why does Westpac charge an early termination fee for home loans?

    The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

    The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

    Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

    Cash or mortgage – which is more suitable to buy an investment property?

    Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

    A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

    How long does ANZ take to approve a home loan?

    The process of applying for a home loan usually stays the same across all lenders. On the other hand, the time it takes for a lender to approve the home loan differs from lender to lender. When it comes to ANZ, it takes anywhere between 15 to 18 business days to approve a home loan from the day of the application to approval. This timeframe is highly dependent on the credibility and availability of your documentation. You can apply for an ANZ home loan in two ways; a Quick Start home loan application or a full online application.

    If you opt for the Quick Start home loan option, you’ll need to fill out a form with basic details. During this stage, you don’t need to add any supporting information. An ANZ representative will then call you within 48 hours. The representative will help take your application forward, including assessing all relevant information, documentation and conducting a credit check.

    You can also submit your entire home loan application with ANZ online by filling out a comprehensive form with all the information and documentation needed.

    Once ANZ has conducted the preliminary checks, you’ll be informed of the pre-approved amount they’re willing to offer. Based on this amount, you can set a budget for your property search and make sure you stay inside your budget. Pre-approval will last for three months but can be extended by applying with ANZ if you don’t find a property. But it’s best to find a property as soon as possible as ANZ may decide to change the amount if your financial situation changes.

    After you find a property and have your offer accepted, ANZ may send an assessor to the property to verify it’s value. If everything is per their terms and conditions, ANZ will finalise your home loan’s approval and release the funds.

    Can I apply for an ANZ non-resident home loan? 

    You may be eligible to apply for an ANZ non-resident home loan only if you meet the following two conditions:

    1. You hold a Temporary Skill Shortage (TSS) visa or its predecessor, the Temporary Skilled Work (subclass 457) visa.
    2. Your job is included in the Australian government’s Medium and Long Term Strategic Skills List. 

    However, non-resident home loan applications may need Foreign Investment Review Board (FIRB) approval in addition to meeting ANZ’s Mortgage Credit Requirements. Also, they may not be eligible for loans that require paying for Lender’s Mortgage Insurance (LMI). As a result, you may not be able to borrow more than 80 per cent of your home’s value. However, you can apply as a co-borrower with your spouse if they are a citizen of either Australia or New Zealand, or are a permanent resident.

    How can I get ANZ home loan pre-approval?

    Shopping for a new home is an exciting experience and getting a pre-approval on the loan may give you the peace of mind that you are looking at properties within your budget. 

    At the time of applying for the ANZ Bank home loan pre-approval, you will be required to provide proof of employment and income, along with records of your savings and debts.

    An ANZ home loan pre-approval time frame is usually up to three months. However, being pre-approved doesn’t necessarily mean you will get your home loan. Other factors could lead to your home loan application being rejected, even with a prior pre-approval. Some factors include the property evaluation not meeting the bank’s criteria or a change in your financial circumstances.

    You can make an application for ANZ home loan pre-approval online or call on 1800100641 Mon-Fri 8.00 am to 8.00 pm (AEST).

    Do the big four banks have guarantor home loans?

    Yes, ANZ, Commonwealth Bank, NAB and Westpac all offer guarantor home loans. These mortgages are also offered by many other banks, credit unions and building societies.