ANZ Fixed Rate Loan

Features

ANZ Bank offers borrowers competitive fixed interest rates that give you the security of knowing what you’ll need to pay back on your home loan over a certain period. You can schedule your repayments to be weekly, fortnightly, or monthly to coincide with your salary payments.  

Loan terms are available for between one and five years and seven and 10 years, which is longer than many lenders offer. You can make principal and interest repayment or interest only repayments on loans up to five years if you’re an owner occupier. Interest only repayments are also available for seven and 10-year investment loans.

Borrowers get a 100 per cent offset facility with a one-year fixed rate loan. This can help you reduce interest costs with your savings offsetting your home loan principal during this limited time.

ANZ Bank also allows you to make a certain number of extra repayments each year up to a certain point without being charged a fee, provided you don’t exceed the ‘tolerance level’. This level is calculated as the lesser of five per cent of the loan amount at the start of the fixed rate period or $5,000. This is a bonus because many other lenders don’t allow such generous extra repayments on fixed loans.

Any additional repayments made to the loan during the fixed rate period may be accessed via a redraw once the loan reverts to a variable rate.

Lenders mortgage insurance is usually required if you borrow more than 80 per cent of the value the property. Overall borrowing limits generally sit at 90 per cent for new customers and up to 95 per cent for eligible existing ANZ customers. A maximum loan amount of $1 million applies. You have the option to split your fixed home loan with a variable home loan, though a split fee may apply.

Who is the ANZ Fixed Rate Loan good for?

The ANZ Fixed Rate Home Loan is suitable for owner occupiers, investors or refinancers wanting the security of knowing how much they’ll repay on their home loan over a certain period.  The loan may suit those who have the spare cash to make extra repayments up to a certain amount without being penalised.

Review - What RateCity says

ANZ fixed loans are flexible and allow you to make extra repayments each year of the fixed term, provided you stay within the ‘tolerance level’, which is fairly generous. The loan may suit owner occupiers or investors who want a longer fixed loan, as ANZ allows periods up to 10 years, when many lenders only allow up to five years. The main downsides are the high upfront, monthly and rate lock fees, which may put off first time buyers looking for a lower cost home loan. 

ANZ Fixed Rate Loan Options

The ANZ Fixed Rate Home Loan offers a range of fixed loan term options, from one to five years.

Pros
  • Competitive fixed rate.
  • Limited 100% offset account.
  • Repayments allowed.
Cons
  • High upfront, ongoing and ‘lock rate’ fees.
  • No redraw facility during fixed loan.
  • Offset account only for 1-year fixed terms.
Eligibility

Deposit of 20 per cent required without mortgage insurance.

About ANZ

ANZ is one of Australia’s largest banks and offers a range of banking services like personal accounts, home loans, internet banking, credit cards, insurance and personal loans. It has a strong branch network and ANZ also offers mobile banking services for those who want to speak to someone face to face.

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