INDEPENDENT NEWS

ANZ Reverses Home Loan Interest Rate Trends

Published: Fri 31 May 2002 10:21 AM
Friday 31 May 2002
Against an environment of recent increasing mortgage rates ANZ is offering two options that can help customers save money.
ANZ is launching a special 18 month fixed home loan interest rate of 7.40% per annum effective from Saturday 1 June 2002. This rate is lower than the current 1 year fixed rates offered by ASB, BNZ, National and WestpacTrust, and over 0.5% per annum lower than their current 2 year fixed rates. The 18 month fixed rate is subject to change but can be held at the date of application for up to 28 days free of charge.
ANZ has also increased the discount margin offered on its ANZ Easy Start home and residential investment loans from 1.25% to 1.50% for the first year, which was effective for new customers from Thursday 23 May 2002. The current first year ANZ Easy Start variable interest rate is 6.25%. ANZ Easy Start home loan customers are guaranteed to remain 1.50% below the ANZ Standard Variable rate for the first year.
ANZ Easy Start provides real benefits to first home-buyers by reducing interest costs in the first year. With such a low rate, repayments are also lower, thereby freeing up cash for the generally expensive first year of home ownership. The loan has a minimum term of three years and reverts to the current ANZ Standard Variable interest rate for years two and three. Lump sum payments can be made without early repayment charges occurring, however an early repayment charge applies if the loan is paid off in full within three years.
"Most people have their same home loan type for three to four years so we find the three year term is not onerous for customers while it allows us to offer a great first year discount," says David Hamilton General Manager Mortgages.
In addition to these interest rate offers ANZ is also not charging a loan approval fee on all new home loans or residential investment loans and top-ups of $100,000 or more. This means a saving for home loan customers of up to $300. A loan approval fee of $500 applies for loans under $100,000.
Lending criteria applies for all lending and mortgage insurance costs will apply for loans over 80% of the property value up to a maximum of 1.56% of the loan amount.
"A 1.50% discount for the first year of a variable rate loan is significant and on a $100,000 home loan with monthly repayments and a 25 year term a customer will save approximately $1,100 with lower repayments and $1,500 in interest charges in the first year when compared to the current standard variable rate," says Mr Hamilton said.
"Customers concerned about rising interest rates, but wanting some repayment flexibility, could get the best of both worlds by combining ANZ Easy Start and 18 month fixed rate home loan."
ENDS
ANZ Bank
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We're passionate about helping our customers make their money work harder and equipping them to make better financial decisions. Whether it's travelling the world, buying a home, building a business, investing for the future or protecting their family's future, we use our financial strength and expertise to help make it happen.
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