ANZ is making waves in the home loan market by broadening the eligibility for its low-rate digital-only ANZ Plus home loan.
Today’s highlight
| ANZ Plus Expands Eligibility Criteria for Home Loans
• ANZ Plus, a digital banking initiative by the big four banks, has expanded eligibility criteria for its app-based home loan product. • The product now allows refinancing home loans on properties in regional Victoria, New South Wales, South Australia, Queensland, and Western Australia. • Previously, only borrowers refinancing loans in capital cities or major regional centres were eligible for the low-rate product. • The ANZ Plus home loan currently offers a variable rate of 6.14% p.a., comparable to CommBank’s Digi Home Loan and 15 basis points lower than the average variable rate for new home loans signed in June. • Eligibility is limited to owner-occupiers refinancing an existing loan making principal and interest repayments and those with a loan-to-value ratio (LVR) of 80% or less. • New features include the option to convert an existing ANZ Plus deposit account into an offset account, an equity release option, and an ‘insights’ tab. |
Expanded Eligibility for Regional Borrowers
Previously, the ANZ Plus home loan was only available to borrowers refinancing loans in capital cities or major regional centres. However, ANZ has now extended eligibility to include a range of regional areas across Victoria, New South Wales, South Australia, Queensland, and Western Australia. This change means that more Australians living outside of major urban centres can now access ANZ’s lowest variable home loan interest rate.
Unfortunately, borrowers in Tasmania and the Northern Territory are still not eligible for this mortgage product. Despite this, the expansion is a significant step forward in making home loan options more accessible to a broader audience.
Features of the ANZ Plus Home Loan
The ANZ Plus home loan, launched late last year, is a digital-only mortgage product available exclusively through the ANZ Plus mobile app. One of its standout features is the speed of approval—borrowers can often get approved within minutes of applying. This convenience, combined with the competitive interest rate, makes it an attractive option for many.
Comparison with Other Products
The ANZ Plus home loan’s current variable rate of 6.14% p.a. is comparable to CommBank’s digital offering, the Digi Home Loan, which has a rate of 6.15% p.a. (6.28% p.a. comparison rate*). It’s also about 15 basis points lower than the average variable rate for new home loans signed in June, which stood at 6.3% p.a. This competitive rate positions ANZ Plus as a strong contender in the digital home loan market.
Eligibility Criteria and Limitations
While the expansion of eligibility is a positive development, there are still some important criteria and limitations to be aware of:
- Owner-Occupiers Only: The ANZ Plus home loan is currently available only to owner-occupiers who are refinancing an existing loan and making principal and interest repayments.
- Loan-to-Value Ratio (LVR): Applicants must have a loan-to-value ratio of 80% or less. This may vary depending on the property type.
- Regional Restrictions: The loan is not available in Tasmania and the Northern Territory.
These criteria help ANZ manage the risk associated with lending while offering a competitive product to eligible borrowers.
New Features to Enhance Your Loan Experience
ANZ has recently added several new features to the ANZ Plus home loan product, aimed at improving the borrowing experience and financial well-being of customers. Some notable additions include:
- Offset Account: For a $10 monthly fee, borrowers can convert an existing ANZ Plus deposit account into an offset account. This feature can help reduce the interest paid on the home loan by offsetting the loan balance with the deposit account balance.
- Equity Release Option: This feature allows borrowers to access the equity in their home, providing flexibility and additional financial resources if needed.
- Insights Tab: The new ‘insights’ tab in the app offers estimates on how much time could be shaved off the home loan by making lump sum repayments, increasing auto-repayments, or using an offset account. This tool helps borrowers manage their loans more effectively and plan for future financial goals.
ANZ has also expanded the product’s eligibility to allow loans of up to $2 million and has started accepting applications from Foreign Tax residents and permanent residents.
Get Started with ASK Financials
If you’re considering refinancing or exploring your home loan options, ASK Financials can help guide you through the process. Our team of experts is here to provide personalised advice and help you find the best mortgage solutions for your needs.
Ready to take the next step? Contact ASK Financials today to explore how we can assist you in achieving your property investment goals. Click here to get started!
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