ANZ is one of Australia’s 4 major banks and ranks among the top 50 banks in the world. Their success with mortgage brokers has made ANZ a leader in the home loan market.
The most important part of this is knowing what their home loans are like. In this article, we’ll look at ANZ home loan products and ask:
- Who is ANZ and what do they offer?
- What types of home loan products do they have?
- Who’s eligible for an ANZ home loan?
- What’s the home loan application process like?
- What are the pros and cons?
Chances are if you’re looking for a home loan, you want to know how the big banks compare, and how you can get the best home loan. We’ll have a look at ANZ and see who their home loans are suitable for.
Who is ANZ and what do they offer?
ANZ has been around since as early as 1835 and became known as ANZ in 1951. With a focus on the mass market, it offers low-risk loans suitable for most home buyers and investors. ANZ has a widespread branch network across Australia, making them super accessible for customers who want to talk to a representative face-to-face.
ANZ is one of the most popular choices for home loans in Australia. Arguably they are one of the better lenders for first home buyers and self-employed borrowers. Although not perfect, ANZ is still among the top few lenders in regard to customer service. ANZ’s fees and rates are standard and generally one of the cheapest in the market.
YouBroker is an ANZ Bank accredited mortgage broker
As an accredited ANZ Bank mortgage broker, we are able to assist you, check and qualify, get approval, and track you through the A-Z of the ANZ Bank mortgage process. We have access to:
- ANZ’s Underwriting rules, policy and calculation engine so we can see if you qualify (without harming your credit rating).
- Access to talk to ANZ Bank mortgage officers from both front office, assessment teams, and back-office teams.
- Access to order a formal property valuation via ANZ Bank, which allows us to see upfront if your property has enough equity in it
- Access to get custom pricing discounts, and see if ANZ Bank will compete harder (than advertised) for your business, based on your LVR, product types, and your overall lending amount. Usually larger lending over $750,000 allows for higher discounts.
- We can also use our tools to compare ANZ Bank vs. other banks to see which ones are the best overall fit for you.
What types of home loan products do they have?
ANZ has three types of home loans:
- ANZ Fixed
- ANZ Standard Variable
- ANZ Simplicity Plus
For medical, accounting, and legal professionals, ANZ also offers waived LMI home loans.
ANZ Fixed
This fixed-rate home loan has a set interest rate for the fixed period of the loan which can be up to 10 years.
- Available for owner-occupier and investors
- Fixed-rate for up to 10 years
- Comes with rate and repayment certainty
- You can set your repayments for either monthly, fortnightly, or weekly instalments
- No ongoing fees. However, a settlement and discharge fee will be charged
- Optional offset account for a monthly fee if using a fixed term of 1 year only
- Monthly fee until the end of fixed rate term
- Extra repayments allowed up to the annual limit
- Lock your fixed rate for 90 days for a fee of $750 per $1m in lending (or part thereof)
- At the end of the fixed rate period, the loan switches to the ANZ Standard Variable home loan
- 300,000 Qantas Points when you apply or switch to eligible ANZ home loans (apply by 19 August 2022, settle by 31 January 2023)
ANZ Standard Variable
This is a more flexible home loan, with the ability to repay your loan faster and utilise redraw on extra repayments. Here’s what you get:
- Available for owner-occupier and investors
- Variable interest rates
- No ongoing fees. However, a settlement and discharge fee will be charged.
- Free extra repayments and redraw facility
- 300,000 Qantas Points when you apply or switch to eligible ANZ home loans (apply by 19 August 2022, settle by 31 January 2023)
- Access to an offset account for a monthly fee
- You can set your repayments for either monthly, fortnightly, or weekly instalments
ANZ Simplicity Plus
This home loan has competitive interest rates and no monthly fees. It also allows you to make extra repayments anytime.
- Available for owner-occupier and investors
- Ability to borrow with as high as 90% LVR (10% deposit), however, if you have a higher LVR than 80% you will need to pay Lenders Mortgage Insurance (LMI)
- No ongoing fees. However, a settlement and discharge fee will be charged
- 300,000 Qantas Points when you apply or switch to eligible ANZ home loans (apply by 19 August 2022, settle by 31 January 2023)
- Free extra repayments and redraw facility
- You can set your repayments for either monthly, fortnightly, or weekly instalments
Who’s eligible for an ANZ home loan?
To be eligible for an ANZ home loan, you must meet their lending criteria:
- Over 18 years of age
- Australian or New Zealand citizen or permanent resident
- Your primary income is in Australian dollars
- The property that you intend to purchase is the only property being used as security for the loan
ANZ accepts almost all types of employees and is a very attractive option for medical specialists. Generally, you will need to have had at least three months of continuous employment income, which can make getting a loan with them out of reach for those recently starting jobs.
For those that are self-employed, ANZ is the easiest option out of almost all other major banks. They accept a minimum of 1.5 years of ABN registration while other major banks require 2 years. They also only require the most recent business financials to verify its income, whereas most other banks either take 120% of the previous financial figures if the current year’s profit has significantly increased or average the figures of the last two years.
You may be able to borrow more from ANZ than other major banks due to their relatively loose borrowing capacity, however, you may have to account for their higher Household Expenditure Measure (HEM) which may lower your borrowing capacity. Once you have a completed YouBroker profile, you will be able to see how much ANZ Bank will lend you.
What’s the home loan application process like?
In order to secure an ANZ home loan, you can start the process by applying for a home loan by using a mortgage broker like YouBroker. Alternatively, you can visit a branch, use the ANZ website, phone, or organise for an ANZ representative to come and meet with you.
When considering applying for a home loan, it’s important to consider how much money you can comfortably repay and from that roughly how much you can borrow, in line with your given financial situation and current income.
When applying for your home loan, you will also need to provide documentation to your lender. This includes:
- Personal identification, 100 points of ID (driver’s licence, passport, Medicare card etc.)
- Proof of income (whether from an employer or self-employment)
- Details of other income (share statements, dividends, Centrelink statements, rental income etc.)
- Information regarding your current debts, liabilities and assets (other loans and credit cards)
- Personal insurance documents.
- A detailed breakdown of your living expenses
- If you have them, property purchase details(proof of property insurance, contract of sale etc.)
- First Home Owner Grant documentation, if you’re planning on using the grant towards your deposit
If you’re looking at refinancing with ANZ, you will also have to provide them with home loan statements of the loan that you want to refinance for the past three months.
ANZ typically takes between 15 to 18 business days to approve a home loan, starting from the date of application to approval. This is dependent on the availability of your documentation and its creditability. Once you’ve submitted your application for a home loan with ANZ, they will return a pre-approval with the amount they’re willing to offer. This will last three months, however, if your financial situation changes, ANZ may decide to change the amount you’re eligible for.
What are the pros and cons?
The Pros
- You have the opportunity to talk to your lender through physical branches which are widespread across Australia
- First home buyers will have access to guarantor loans
- ANZ is supportive of investors
- ANZ is helpful in refinancing an existing home loan
- Before applying, you will be able to get a bank valuation upfront
- Access to construction loans
- If you are a doctor or medical professional, you have access to special discounts
- ANZ works well with mortgage brokers, such as YouBroker
The Cons
- ANZ is very thorough and pedantic when it comes to assessing living expenses
- It’s tough to get a loan if you aren’t an existing borrower and you’re borrowing with an over 90% LVR.
- It’s difficult to get a loan for first home buyers with a low deposit
- If you have a bad credit history it can be hard to secure a loan
- If you’re unable to prove your income as a self-employed borrower, you won’t be eligible
- Often there can be errors in calculating borrowing power by bank staff and mortgage brokers due to the unnecessarily complex nature of ANZ’s borrowing power calculator
- ANZ’s credit scoring is quite tough and you may be declined for no apparent reason
- ANZ is on the slower side of approving loans with a typical 15-18 days from application to approval
- ANZ’s variable rates are relatively higher than other lenders
- As they’re a major bank, you may feel like less of a priority than a smaller lender
Disclaimer: This information was correct at the time of publishing this article. Banks and lenders may update their products and policies from time to time.
If you want up-to-date information and professional guidance when shopping for a home loan, you can contact YouBroker for assistance: https://youbroker.com.au/contact-us/ or to view ANZ's latest rates, get started on your YouBroker profile and head into the Rates Catalogue to compare ANZ Bank to other banks including Macquarie, UBank, Suncorp, AMP Bank, NAB and more.
Looking For A Mortgage Broker?
Are you in the market for a home loan? Is comparing lenders and interest rates becoming too time-consuming and confusing?
At YouBroker, we understand that navigating the whole home buying and refinancing process can be overwhelming.
YouBroker can help you to find a home loan and lender that’s the best fit for your individual needs.
We can:
- Compare home loan products, interest rates, and deals across multiple banks and lenders,
- Get you access to the best rates, deals, and cashbacks.
- Look at your finances and living expenses and help you with budgeting tips,
- Work out your borrowing power so you know what type of home loan amount you may be eligible for,
- Delve deep into different home loan products and lenders that offer the right fit for your goals and needs, and
- Help you to navigate the real estate buying or refinancing process and limit your chances of getting knocked back for a loan.
At YouBroker, we offer a convenient, online mortgage broker service that provides:
- Support and expert advice from our fully accredited team,
- Quick approvals,
- Streamlined and convenient digital application process,
- A fully secure online platform, and
- Digital updates via our online portal.
If you’re looking to make the home loan application process a breeze, we’re ready to assist. Want to know more? Then let’s get started!
