ANZ home loans

ANZ offers home loans designed for first home buyers, refinancers, those looking to build a new home on empty land, those looking for bridging finance, property investors, and more.

However, prospective borrowers looking to take out a home loan with ANZ should keep a few key points in mind.

The first is that ANZ requires a minimum loan-to-value ratio (LVR) of 95% for principal and interest home loans (80% for borrowers seeking interest-only repayments), meaning it is unlikely you will be approved for a home loan with ANZ if your saved deposit is less than 5% of your total proposed loan size.

ANZ also probably won’t give you a home loan if you can’t repay your proposed home loan at a rate 3% higher than the advertised interest rate. This is because the Australian Prudential Regulation Authority (APRA) requires all lenders to assess an applicant’s ability to service their proposed home loan in the event of interest rate hikes.

Yes, ANZ provides home loans to first home buyers. While they don’t have a specific home loan product designed for first home buyers, they have several tools and resources available to first home buyers designed to help them navigate the process of buying a home for the first time.

Additionally, as of May 2024 ANZ is offering $3,000 to first home buyers taking out an ANZ home loan worth $250,000 or more, paid after settlement.

No, ANZ is not one of the 33 participating lenders chosen by the Federal Government to offer the Home Guarantee Scheme. Subsequently, if you’re a prospective first home buyer looking to secure a home loan via the scheme, you may want to apply for a loan from a different lender.

The Home Guarantee Scheme helps certain home buyers secure a home loan with a deposit smaller than 20%, without having to pay lenders mortgage insurance (LMI).

The Home Guarantee Scheme is made up of three separate initiatives:

• The First Home Guarantee, which allows eligible first home buyers to purchase a home with a deposit of as little as five percent.
• The Family Home Guarantee, which allows eligible single parents to purchase a home with a deposit of as little as two percent, regardless of whether they’re a first home buyer or not.
• The Regional First Home Buyer Guarantee, which allows eligible first home buyers to purchase homes in regional areas with a deposit of as little as five percent.

Applications for one of these schemes can only be made through a participating lender or a mortgage broker acting as an authorised representative of a participating lender.

Yes, you can switch your home loan to ANZ from another bank by refinancing. Borrowers refinancing their loan with ANZ can choose either a fixed, standard variable rate or split rate loan to switch to, and can add a redraw facility and/or an offset account to eligible loans.

ANZ advises that they require a borrower to take out lenders mortgage insurance (LMI) when there is an increased risk associated with the loan in question. They will typically charge LMI if the borrower’s deposit represents less than 20% of the total loan value.

However, if a borrower is applying for an interest-only home loan ANZ will accept a maximum LVR of 80%. This means paying LMI in exchange for having a smaller saved deposit is not an option for interest-only borrowers applying with ANZ.

ANZ charges relatively few fees when it comes to its home loan offerings, but the home loan fees that it does charge include:

• Late payment fee ($20 per month)
• Fixed rate lock fee ($750 per each $1 million or part thereof borrowed)
• Security lodgement fee ($160)
• Settlement fee ($160).

If you’d like to learn more about the applicable fees for a specific ANZ home loan product, check the Key Facts Sheet.