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2.19% Fixed 2 Years Owner Occupied + 6 Mth Hardship Repayment Freeze + 0.3% Bundle Rebate @ ANZ

2650
ANZ 2.19% home loan fixed 2 year owner occ + 0.3% bundle rebate. LOWEST EVER BY BIG 4 BANK.
UPDATE 1/4/2020: 2.49% investor fixed 2 years. We are currently at 2-3 business day turnaround, thanks for your patience.

ANZ is the ONLY big 4 bank to pass on the emergency cut of -0.15% to variable rates

ANZ also allow a request to defer/freeze home loan repayments for up to six-months for hardship subject to approval.

Other big 4 offers: CBA/NAB/Westpac 2.29% fixed 1-3 years. Not passing on of any cuts to variable.

ANZ increased refinance rebate to $4000 for loans above $250k (must lodge by 31/5/2020)

Available under:
- Simplicity Plus: no annual fee, free redraw.
- ANZ Breakfree package, including offset account, redraw, premium credit card. Annual fee $395.
Can be split with variable 100% offset. Fixed has break costs if closed before expiry. No break costs under variable.

ANZ variable rates

Simplicity Plus
2.72% (CPR 2.76%) owner occupied P&I
3.12 (CPR 3.16%) investor P&I (approx +0.3% interest only)

Package (subject to pricing approval)

2.69% (CPR 4.30%) owner occupied P&I (Approx +0.5% interest only)
3.09% (CPR 4.37%) investor P&I (approx +0.2% interest only)

ANZ fixed rates

2.19% (CPR 3.91%) fixed 2 year owner occupied P&I
2.49% (CPR 4.53%) fixed 2 or 3 year (CPR 4.37%) investor P&I
2.69% (CPR 4.55%) fixed 2 or 3 year (CPR 4.40%) investor P&I interest only IO

PLUS ANZ bank rebate (lodge by 31/5/2020)

$4,000 loan size above $250k

PLUS 0.3% Bundle Rebate (available via Bundle Property Home Loans only)

In ADDITION to bank rebates, Bundle Home Loans gives a rebate of 0.3% of loan size (net of offset at settlement drawdown. ie balance owing) for ANY bank or product, eg:

$400,000 = $1,200 Bundle cash rebate
$700,000 = $2,100 Bundle cash rebate
$1,000,000 = $3,000 Bundle cash rebate

Total Fees eg NSW & VIC incl GST

https://www.nswlrs.com.au/getattachment/
https://www.propertyandlandtitles.vic.gov.au/

Mortgage discharge fees $143.5 (NSW), $116.80 (VIC)
Transfer/Mortgage Registration fee $143.5 (NSW), $116.80 (VIC)
Title search $14.70 (NSW)
Legal/settlement fee from incoming lender – Approx $100-$350
Discharge admin fee from outgoing lender – Approx $250-$350
Total fees approx $650 - $800 in most cases.

Why should I fix?

Given it's now obvious banks are no longer passing on any more rate cuts as predicted and cash rate is at 0.25%, a low fixed rate can still save you more money as you can get an immediate benefit from today as opposed to waiting for a drop.

Always worth doing a calculation for your situation, eg:

If you have an existing loan and your rate is 3.18%, fixing at 2.68% will save you 0.5% each year.
On a $500k loan, that is a saving of $2500 every year.
If you're saving 0.5% and go with a lender giving rebates eg Westpac $6,000 for 2 properties, plus our Bundle Rebate of $1,500, that's a further $7,500 in rebates, plus $2,500 interest savings, you are getting a benefit of $10,000 in just one year!

Let me know if we can help.
We have some of the lowest rates, and can get pricing discounts up to 1.9%.
Our policy is to beat any competitor/broker/lending manager with our rates and rebates, so will do whatever it takes to get the best deal for you.

update We are receiving many enquires from previous deals and are replying within 2-4 days. If it's an urgent purchase or fixed expiring, pls write "URGENT" in subject or text and we will contact you ASAP. Thank you for your patience and we will reply to each and every enquiry (in case we miss one, please send me a DM).

Len
Bundle Property Home Loans
T: (02) 9698 7186
M: 0422354868
E: [email protected]
ACL 445947
Disclaimer:
The information provided is for general education purposes only and is not intended to constitute specialist or personal advice. This has been provided without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.

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closed Comments

        • +2

          They won't cut. It impacts their net interest margin too much.

          I think ANZ had a higher variable to start with anyway.

          • @serpserpserp: They won't cut for as long as they can. Profit gives them flexibility. With greater profit, they feel they can do more to help customers.

            But in reality maintaining artificially high lending rates allows them to prepare for, and eventually foreclose on, those who are less likely to make it through a 5 year depression. Why? It is best to have a foreclosure bonanza quickly before the government changes. After all, yesterday the muppet show agreed to print 90B worth of funds at 0.5% for lending to business, which the banks get a 10x return on.

            However biz won't be inclined to borrow, at least not until there is a sunny upside on the horizon.

            So in the meantime, the Banks re-purpose the money, and use it as leverage against the muppets that gave it to them. ABA got real lucky when it went to the theatre this week- 90B is a pretty good return on all those lobbyists' annual subscriptions.

            • +3

              @resisting the urge:

              But in reality maintaining artificially high lending rates

              There is a cost of funds associated with providing loans to people/businesses. An ADI's cost isn't just the cash rate.

              It is best to have a foreclosure bonanza quickly before the government changes.

              If you knew anything about banks, You'd understand that the last thing a bank wants is to foreclose on anyone. They would much MUCH prefer to be paid back their money over the allotted time. Foreclosures means risk of not even getting their money back from a property sale, costs involved in foreclosing, the ensuring costs that will come from the regulatory bodies tightening up lending conditions, weaker credit ratings which mean higher funding costs, broader economy impact, not to mention the brand/publicity impact.

              • @serpserpserp: "There is a cost of funds associated with providing loans"

                Most lending occurs with a level of risk mitigation, in fact most private business (Pty Ltd) lending involves Director guarantees, etc. The risk is risk to some extent, but it is negligible because of this. Being able to charge anything more than a couple of percent over the cash rate is a scam, and now they get AUD90B for 0.5% whenever it suits them to draw on it they get to charge a premium. At the end of the day, if they get caught cutting anyone a bad deal, they'll Deflect/Ignore/Deny and it is never in the interests of any Gov to pick a fight with the banks.

                "the last thing a bank wants is to foreclose on anyone"

                Except that when times of crisis happen, they want to keep their jobs. That means avoiding booking the losses. This is why they run the ruler over their existing book all the time, and use AI to warn them about suspicious borrower behaviours. Except now they buy behavioral data from social media, advertisers, loyalty programs, insurance companies, etc. and are well ahead of the game

                Being able to recover the debt twice over from a lot of defaulting borrowers (if listed as tenants in common), and knowing intimately the value of the assets, moves the scale such that it is very much in their favour. Of course they have many costs, and there are risks, brand damage, etc. but in times of crisis there is so much noise that these are manageable it not negligible. Today's loan contracts are very very long for more reasons than to encourage borrowers to not read/ignore the some effect of the clauses they may fall foul of.

                Besides, you don't have to go far to see them doing it, crisis after crisis the stories get more abundant

            • +1

              @resisting the urge: You lost me at:
              "With greater profit, they feel they can do more to help customers"

              By making me pay more, they're better able to help me out? Or do you mean shareholders, because they'll definitely be happy with higher profit.

              • @DingoBilly: Both, but only one is assured of a return when the bank's bags fill

                • @resisting the urge:

                  That means avoiding booking the losses.

                  Exactly. This is why they don't want to foreclose because this shows up to the analysts, regulators, market etc. Foreclosing is bad for their credit rating.

                  Being able to recover the debt twice over from a lot of defaulting borrowers

                  Doesn't benefit the banks whatsoever. Do you realize that if banks can recover debt twice over from assets they take what is owed, not what is recovered. So if you lose your house, and you have 250k owing but the house sells for 500k you get 250k back.

                  However in a crisis market, asset values fall, markets are illiquid, and the odds of making the money back is often a small percentage and can take a very long time to occur. They would much rather this not happen and try everything in their power to not come to this. But if people stop paying their mortgages and banks give them reprieve and then they still can't pay for whatever reason, then eventually they do have to call in the loan. They aren't doing it because they are rubbing their hands together thinking about how much money they are going to make over selling Joe Bloggs house, they do it because they need to get some of their money back before something happens to their secured assets.

                  • @serpserpserp: Banks are calling in loans every day. It is not like they aren't doing this.

                    My point is just that they are beginning to go early rather than late, ie reduce their lending books before things get worse in the medium term, to sell the assets that they would otherwise be selling into an illiquid market, and before the chance to recover any relative values has gone.

                    Also that they accelerate the rate of foreclosure when the media is full of other stories, and when they can exert pressure over government. The levers they use to increase and decrease this to maximise return, and minimise impact in all its guises

                    • @resisting the urge:

                      My point is just that they are beginning to go early rather than late

                      Well that point is incorrect as that isn't happening at all.

                      • @serpserpserp: Here are hundreds presently for sale:
                        https://properties.mitula.com.au/mortgagee-possession

                        Mortgage stress levels are rising, @32.7 last I looked (Source: DFA) and that's despite falling rates, CPI, rising wages.

                        That was before COVID19, so what it looks like now is what the gurus are scared of, and why foreclosures are being countenanced at many levels in the Banks, (which many will assume is why the Gov gave them so much cash (ie the condition that the Banks help tide people's payments over), but in reality what happens is people that can't pay get pushed up the list towards forced possession, which lenders prepare for, and will execute 'weeding runs' to take out that low-hanging fruit whenever the time is favourable to keeping it low-key

                        With debt/income ratios still >150%, we don't need much to break the camel's back now

                        • @resisting the urge: Of course mortgagee in possession sales happen all the time, but a couple of hundred of houses on sale is hardly a move by banks themselves, it is people not being able to pay their mortgage for whatever reason. This happens during the boom times as well.

                          I just think the notion that banks somehow "speed up" the process isn't right. They have a process that have to follow in these events, they can often be lenient with this process, or they can stick to the letter. But they can't go any faster than documented.

                          • @serpserpserp: 339 properties listed now.

                            This does not count the ones sold in between.

                            I can assure you that the one thing Finstos do is reduce their risk exposure whenever it is viable. So when they get extra data points provided by government, insurance companies (data partners), or as a result of regulatory changes, or things happen that encourage or excuse them to make changes, they do just that.

  • Hi Len,
    Pretty keen to jump on board, but am waiting on the next response from our email chain from last Thursday - thanks!

  • What are the rates for 3 or 5 years fixed?

  • What are the investment mortgages like?

  • +2

    I am starting to think that it is getting close to locking in.

    THE RBA governor even mentioned that the rate will remain at this level for a while.

    We are at .25% cash rate and the banks/smaller lenders don't want to budge on their variable rates.

    Athena who are quick to pass on the full cut is even hesitant and has yet to release their new loan rate from yesterdays rate cut.

    2.19% has 2 more rate cuts included (for major bank loans) and 1 more for other smaller lenders (such as Athena, Reduce), so you are basically gambling that the RBA will not cut to negative interest rates.

    It probably wouldn't hurt to lock in for a year and reevaluate after that.

    • This deal is 2 year fixed though.

      • NAB offer 2.39% fixed for 1 year.
        6 month deferrals available
        $4K cashback

        • Is this a published offer anywhere or a personal offer you received?

          Cheers.

    • I'm sure you've seen by now but Athena didn't pass on any variable cut. I was quite shocked when I read it tbh

  • I have switched and refinanced with St.Geroge in Feb2020, How soon I can do refinance again? Does it affect Credit Rating if switch within 2-3 months?

    • +2

      Normally you need to stay with your current bank for 6 months and yes it may affect your credit score

    • +1

      Every refi involves a credit hit. But you definitely can switch faster than that. I changed to ANZ in mid Jan, and just yesterday settled with St George. Can definitely chase the offers. Onto NAB next… :)

      • Actually thinking to do other way to go to NAB first as there CashBack finishes 30 June and then ANZ as it's still Sep.:)

    • ANZ only requires 3 months and you can refinance.

      • So ANZ wont consider any refi applications if you haven't been with previous provider for more than 3 months?

      • What's St George?

  • What is the best 3 year fixed rate OP?

  • I am currently building my house. Is there any benefit for me as well? Does anyone know?

  • +3

    Is CPR the comparison rate? How come it is higher on the fixed loans than variable loans?

  • -1

    Is it ANZ or A N Zed ?

  • Hi Len,

    I'm with CBA now, split to 3 loans a few years ago. They are all variable now, do I need to combine them before refinance to another bank?

    Thank you in advance.

    • No need to combine. Can move all 3 to new bank and combine at new bank or keep as 3 loans.

      • Thank you

    • 3 loans…3 sets of fees?

  • Would u able to freeze repayment for investment loan?

  • +1

    What’s the paperwork like to refinance ? Recently they made you go through every minute detail before approving loans .

  • What about QLD?

    • QLD fees are approx $192 each for mortgage registration and discharge

  • -1

    Im still locked in for another 3 years 😞 it would be took costly to break now

    • have you checked with your bank about the economic cost you might pay? sometimes it's cheaper to break now if you can refi to lower rates and 4k cash back. I have done so many for my customers as many of them locked at 4.79% few years back for 5 years.

  • Hi Len,
    Now I have a loan with another bank, can I refinance my loan to ANZ, and split the loan to 80% fixed rate and 20% variable rate (the numbers are just for example)? Will this double my refinance fee?
    Thank you.

    • Hi Leo $4k rebate is max once per person per 12 month period.

    • No it won't. Mortgage is regitered against a title. Assuming it is only 1 property against both portions.

  • You have mentioned interest rates for Investor P & I but investors prefer Interest only loans. Can you please interest rate for those? Thanks

    • +1

      Click on "Go to Deal". It is mentioned

      • +1

        Thanks mate. Interest only rate start from 3.73%. No Thanks ANZ.

  • +5

    What is the fees that make the comparison rate so high? "2.19% (CPR 3.91%) fixed 2 year owner occupied P&I"

  • +3

    I get really confused by comparison rates, what are the fees that make it go from 2.19% to 3.91%? Also, isn't 3.91% not really that great? The CPR on the variable is 2.76, doesn't that make it the better loan.

    Forgive the dumb questions!

    • +5

      We get this question at least once in every thread. There is a common misconception that lower comparison rates CPR will save you more money and better than a higher CPR - not necessarily and can actually be the opposite, here's why:
      - "Comparison rates" were invented by the government to reflect lender fees over the life of the loan.
      - It is based on a loan size of $150k over 25 years. If your situation is not that (which are actually most people), then the CPR is actually misleading and can cost you more money.
      - If your loan is larger than $150k, then it is usually better for you to pick a lender with a lower ACTUAL rate (even if the CPR is higher) as it will save you more interest each year. Of course take into account all the fees eg $395 annual fees, which may be less significant for a larger loan size.
      For larger loans, a lower ACTUAL rate (with a higher CPR) is often better than a higher actual rate (with a relatively LOWER CPR).
      - Hence CPR can be misleading and a lower CPR can be more expensive than one with a higher CPR but has a lower ACTUAL rate. The correct approach is to look at the ACTUAL rate plus all fees involved, rather than the CPR.

      The CPR for big 4 look high as they take into account the $395 annual fee x 25 years = $9,875. This extremely high amount is included in the calc of the CPRfor a $150k loan hence greatly inflates the CPR of such a small loan to make the rate appear higher than it actually is. It is actually not a huge amount over 25 years relatively speaking (equiv to 0.1% rate difference on a $395k loan size), and is much less than if you went to a small lender which has up $2,000 in application, valuation, legal, discharge fees (which is negligible over 25 years hence the low CPR, but you get hit at every transaction/refinance. The smaller lenders have a lower CPR as they have no annual fee, but often a large upfront/discharge fee. The CPR is a very misleading number and small lenders using a low CPR look better than larger banks even though it may be the opposite.

      • Thanks for the detailed reply Len, really appreciate it. Makes a lot more sense now!

      • On the ANZ it says the CPR is based off a $150k loan over 25 years. But the fixed rate loan is only 2 years. Could you explain a bit further how this works?

        Since the fixed rate CPR is 3.91%, does that mean I will be effectively paying the same as a 3.91% CPR variable rate home loan?

        From a basic calculation it seems like there is an annual fee/charges of $2580 ((3.91%-2.19%)x$150000). Could you breakdown what are these charges. Are these flat rate charges? Does this mean if I have a 800k loan the comparison rate will be 2580/800000+2.19% = 2.51%?

  • @len
    What is the difference between package and fixed? Package is stil 2.69%.
    Does it mean that 2.19% fixed only and I can’t split the loan?
    What would be the rate if I want Fixed and variable with offset.

    • 2.19% fixed must be under package. The 2.69 is the package variable rate. You can still split variable and fixed any amount you like and variable being a bit higher will have a smaller impact. Our general advice below

      Choice of variable/fixed split amounts (subject also to market trends)
      o   Variable amount – try to keep this as low as possible (if rates are higher than fixed) being the maximum extra amount you will repay into the home loan during the fixed period eg 2 or 3 years, so you have enough headroom for offset (as only variable has offset, not fixed).
      o   Fixed amount – try to keep this as high as possible (if rates are lower than variable). That way you enjoy the lowest rate for the majority of your loan, given you will not be able to repay the whole loan during the fixed term in 2 or 3 years.

      • ANZ doesnt offer offset account for fixed? Why is that?

  • +3

    Athena's respone to the Rate Cut "20TH MARCH 2020

    Yesterday the RBA announced a drop in Australia’s cash rate. For the last 4 RBA rate changes, Athena has proudly dropped our rates in full and instantly to all customers. This time, we are leaving our interest rates unchanged. We might cop a bit of flack for it, considering we have been vocal when others haven’t dropped theirs. But a lot has changed in the past few weeks. We wanted to share with you why we took this decision. Why this time it’s different.

    The RBA has dropped rates because of the global economic disruption from the coronavirus crisis. That same disruption has caused the cost of funds for mortgage lenders across the industry to rise significantly. So while the RBA has cut rates, sadly the cost of money has risen. We already have incredibly sharp pricing, to give you the best deal. In that context we are keeping our current low rates steady, from just 2.59%1. These are great rates, without all the fees, to enable longer-term savings for our customers and give us both a little more certainty."

  • What does "In ADDITION to bank rebates, Bundle Home Loans gives a rebate of 0.3% of loan size (net of offset at settlement
    drawdown. ie balance owing) for ANY bank or product" mean? Does this mean if I'm refinancing a $500k loan, I get $4k from ANZ and $1.5k from you?

    Also, any clawback provisions or similar?

    • Yes correct $1.5k from us. we have a 24 month clawback policy in accordance with the bank's clawback.

      • What does clawback mean? If we don't keep the loan for 24 months you will take back the 0.3% you gave at the start?

        • From memory <12 months = 0%, 12-24 months = 50%, >12 months = 100%.

      • So when do people generally receive the $4k cashback and does
        anz have a clawback clause if you refinance away within 24months?

  • What do you have available for 90% LVR interest only investment loan?

  • +1

    Hi Len,
    What's are fixed Interest rates on offer for Investor IO, both 2 & 3yrs?

    • Same question.

    • +1

      Then our debt will be bought at a steep discount

      Doesnt really change anything for the consumer

    • +7

      Love uneducated comments.

    • +1

      I'm concerned about this. What happens if my bank (not top4) folds during these times?

  • For this sentence "CBA/NAB/Westpac 2.29% fixed 1-3 years." - Does anyone know if this is only for owner occupier loans that are fixed or is this for investor home loans as well? If it's only for owner occupier, what are the new fixed investor home loan rates?

    • yes owner. Banks are prioritising owner occupiers at this difficult time and less love for investors it seems

  • hi Len,

    Currently with CBA variable rate PI, above the required Loan amount.

    Am i eligible?

    Thank you

  • Need suggestions from experts!
    I am in the market for my 1st home, but due to current situations i feel should not be investing any money this time or should i wait till it dropped more in coming few months.

    • General "what I would do" advice only.

      If this is for your own PPOR, you have the money, and your job is secure; keep looking and be ready to buy if you find a home you like within your budget. Understand where the market was before covid exploded here and aim to not overpay (I'd try for a 10% discount at least) but otherwise don't agonize over Corelogic movements.

      Don't try and time the market, especially real estate if its for you to live in.

    • +5

      Impossible to say for sure a successful vaccine could change the entire situation in short order, with rates this low prices would start spiking again. OTOH no vaccine and

      dead people = more homes for sale (old ones are usually home owners)
      unemployed people = more homes for sale
      struggling investors = more homes for sale
      unemployed people = less buyers
      worried employed people = less buyers
      will there be less immigration??? = A LOT less buyers

      IMHO one of the reasons banks are being so nice is not because they love us but because they don't want us to sell into a collapsing market, holding a $1m mortgage on a $500K house is bad business. With rates so low it makes more sense to get no repayments at all for 6 months but prop up the price. They will get the repayments back later anyway.

  • How does one take advantage of the mortgage payment freezes?

  • Does ANZ offer offset on interest only?

  • Hi OP, what are the fees for someone living in WA, ballpark figure please?

    • All states approx registration and discharge govt fees
      ACT: $145
      New South Wales: $141.60
      Northern Territory: $145
      Queensland: $192
      South Australia: $163
      Tasmania: $135.09 to register, $167.48 to discharge
      Victoria: $116.80
      Western Australia: $171.20

  • I have an investment property loan of 247k which is a bit below 250k. Can I still get the 4k rebate? If not, is there any way to get it? like ask ANZ to loan me 3k more?

  • Any downsides of going through a broker like this vs directly with bank?

    • We have an extra 0.3% rebate not avail directly with the bank.

  • Refinance + repayment freeze?!?
    The bank will only allow the repayment freeze if you can show you have good reason (ie. lost your job, no savings).
    The bank will only allow you to refinance if you can service (ie. have a job!).
    What have I missed here?

    • They are offering both…not to the same person though….

  • But I think CPR 3.91% is high

  • +1

    The banker today at CBA told me they approved a %1.89 variable Owner occupier to a client yesterday, I told her you mean %2.89? She said no, %1.89. Crazy times!!

    • +1

      Loan size must be 1-2 mil, no way 500k loan can get this rate.

      • It must be, but even the thought of that is crazy.
        I didn't ask her much because I wasn't interested.

    • Unless the amount is really high that's just air coming out of someone's mouth.

  • I have a 250k mortgage with CBA @3.6%
    Clearly getting slaughtered!

    • Same boat

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