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ANZ Fixed Home Loan - 3.75% Fixed Interest Rate for 2 Years (New and Existing ANZ Breakfree Customers) @ ANZ

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ANZ Fixed Home Loan - 3.75% Fixed Interest Rate for 2 Years (New and Existing ANZ Breakfree Customers) @ ANZ
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MarsTitan on 10/09/2018 - 10:16 anz.com.au (1456 clicks)
Last edited 10/09/2018 - 11:34 by 1 other user

As recently the big four have increased the home loan interest rate for the peasants, I did some hunting to find a better deal and avoid some uncertainty in the financial markets. ANZ just before their rate increase started a promotion of 2 years fixed interest rate for 3.75% for breakfree customers.

It might suit some people but there are certain conditions like no offset account, no redraw and not able to pay more than 5K per year as extra payment (without incurring a fee) and minimum loan of 150K. P&I only. Yearly fee of around $395 also applies.

Get some professional advice from your financial advisor if this product is right for you.

credit to roxelion https://www.ozbargain.com.au/comment/6348233/redir for pointing this out.

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  • [Deactivated] on 10/09/2018 - 14:31

    FYI NAB announced today they are not increasing their SVR as of right now. Will update as I receive correspondence

  • ely on 10/09/2018 - 15:03
    +2

    If you're after this sort of offer anyway, UBank has 3.74% fixed for three years and you can do the same rate on interest only as well. $395 set up fee for rate lock, no other fees. Also if you're going to do a split the variable rate for P&I owner occ is 3.59% which is pretty sharp. They were until recently offering $1000 cash back as well, so when I talk to them I'll be trying to get some of that even though it's expired now.

    Not associated, but looking at refinancing myself soon and they seem like the best deal around; would lock almost everything in to three year fixed, with a portion split into variable so as to permit additional payments if necessary (although putting it in to ratesetter or something instead probably offers a better, while still low risk, return).

    Have also been talking to Westpac because of the 200k velocity points offer, their brokers are able to waive additional fees and provide slightly better rates than advertised as well. Seems like a lot of hassle but I'm tempted to do it to collect the 200k and then move again, the cost to apply is low. Not really sure how taking on a mortgage and then refinancing after a few months looks to other lenders though - probably not good :D

    • MarsTitan on 10/09/2018 - 15:39

      This Ubank seems like a better deal, fixing for 3 years seem better.

    • Budju on 10/09/2018 - 17:16

      Hey mate i am in the same boat and haf the same assessment. Will do a split so i can make additional repayments plus benefit from a bit of a lower rate currently. Didnt know about the 1k rebate, let me know if you get any joy with that.

      • ely on 10/09/2018 - 17:55

        Spoke to them on the phone today, definitely ended - but that was just the first step, they didn't have any financial details or anything. If you go through more of the process and they're keen on lending to you and you suggest that you're looking elsewhere I wouldn't rule out them sweetening the deal. With Westpac the deal seemed to get sweeter with every message back and forward - but then, their offer is nowhere near as good in the first place :D

        • Budju on 10/09/2018 - 17:58

          Hmm yea, I was a bit surprised NAB wouldn't even negotiate lower than 3.88% fixed rate OR remove the $395 annual fee with me - but I suspec they might change their tune when I send them the refinance papers.

        • ely on 15/09/2018 - 08:21

          @Budju: Westpac got back in touch and offered $1,250 cash back.

        • Budju on 15/09/2018 - 10:46

          @ely: Nice, so did you take that offer or still considering Ubank?

        • ely on 16/09/2018 - 12:47

          @Budju: Still unsure; I work with some mortgage brokers, so getting them to have a look too. Westpac only seem to offer minimum three year fixed and the variable rate is crap (about to increase to 3.98%), over three years it'd be more than a grand worse than uBank - but maybe worth it for 200k velocity for me (even with gift cards that's still worth $1200 or so).

        • Budju on 16/09/2018 - 16:14

          @ely: Oh you mean their fixed rate is 3.98%? Yea that does seem like the points would be the only advantage (if any at all)… Would appreciate if you let me know if you ever find anything better with Ubank or anyone else :)

        • ely on 16/09/2018 - 16:18

          @Budju: Depends on your balance, but for me I'd be ahead cash wise for the first 1.5 years-ish, and I can always jump ship before then if uBank brings back their cashback.

        • Budju on 16/09/2018 - 16:20

          @ely: With my balance and assuming you would have no annual fee at all with Westpac, the points would cost me $671 vs Ubank. I have no idea what 200,000 points can buy you. This also ignores the $300 refinance fee I will have to pay with NAB, however that in my mind is a foregone conclusion.

        • ely on 16/09/2018 - 20:19

          @Budju: You'll need to pay a discharge fee to NAB, $300 is probably about right, mortgage deregistration and reregistration fees to your state government ($114 each in VIC apparently), and possibly break fees if you're on fixed at the moment with any of your mortgage. If you're factoring in a switch to Westpac and then to uBank then you'll need to pay those all again as well.

          When figuring out how far ahead or behind you'd be it's based on how you're with them; Westpac is a worse deal in the long run, but not by much for the fixed rate, and with the cashback it's a better deal in the short term.

          Valuing points is tricky; you can buy gift cards with them for about .6 of a cent at worst, so $1200 worth. You could also book three business class fights from Melbourne or Sydney to Bangkok with it (plus about $200 in taxes/fees) to give an idea of the value that way, retail for those would be over $6k - but unless you would have paid cash for those flights anyway it's not really "worth" that much.

        • ely on 17/09/2018 - 09:25

          @ely: Westpac's break fee is $350, so costs to switch from Westpac will be at least $350 break + reg/dereg mortgage = $578.

          Minimum fixed term is two years. After two years all fixed I'd be $170 worse on Westpac, plus $578, but 200k velocity points up. Assuming that I could refinance to a better deal elsewhere at that point, which is not guaranteed. Risky for minimal gain.

          If I went all variable instead, then I'd be $190 better off with Westpac after one year, less $578, so $388 worse off. $388 for $200k velocity points is pretty cheap, and I'd possibly be able to jump ship earlier than that as well (maybe uBank would bring back their cashback…). Could be a plan. Still need advice from my brokers about how bad jumping ship after three months would look :D

    • [Deactivated] on 10/09/2018 - 17:58

      Does NAB come with offset account? I have still 3 months to go before I can have a minimum deposit.

      • Budju on 10/09/2018 - 18:08
        +1

        NAB variable rate has offset, but not with the fixed.

        • [Deactivated] on 10/09/2018 - 19:34

          If only there was an option with offset account and good fixed term loan. My weekly expenses are ridiculously overestimated by banks (meaning I have more saving that need an offset account to use). I don't know why these greedy bastards don't just take the additional money in when available.

        • tunzafun001 on 10/09/2018 - 21:27

          @wdmhbbbwctcdlbc: There is Teachers Mutual Bank, community first, Easy Street etc. All have Comarble fixed rates with offset. You will pay around $500 upfront for the privilege. But in the scheme of thousands in saving..no issue. No ongoing package fee rubbish either. Used them all. Better than a big 4 bank… but that isn't that hard really. However, with new IL rules I'm going to have to go a big 4 as they make their own rules.

  • Sofie519 on 10/09/2018 - 15:46

    Currently any of these OO, P&I with offset account would be a better deal

    • 2yr intro variable 3.59% - <90%LVR $120 annual fee
    • lender offering lifetime variable 3.66% with offset $395 Annual fee <80%LVR
    • lender straight up offering $1500 rebate for refinances >$150k, 3.72% <90% annual fees $395
    • ely on 10/09/2018 - 16:32

      Links to these would be good :)

      What is "lifetime variable"? If it's 3.66% for the life of the loan then that sounds like it's fixed?

      • Sofie519 on 10/09/2018 - 16:42

        sorry, meant lifetime discount off variable. So the discount isnt just applied for 1st 2 yrs. will still move with variable rate of course.

        • ely on 10/09/2018 - 16:46

          Ah, yeah, I know what you mean now.

          What lender? Links?

    • ely on 15/09/2018 - 08:22

      No links? I'd really like to look at some of those offers in more detail.

  • ak-km on 10/09/2018 - 15:47

    NAB: https://www.nab.com.au/personal/loans/home-loans/nab-base-va…

    95% borrowing. Just need to save 5% deposit

    • ca4cpa on 10/09/2018 - 17:03

      No offset account.
      Not good if you want to convert property to Investment in future.

  • Budju on 10/09/2018 - 17:11
    +1

    Ubank is better still?

    • [Deactivated] on 10/09/2018 - 17:44

      Yeah, my question too. Isn't it better to go with one of those smaller banks?

      • Budju on 10/09/2018 - 17:53
        +1

        Something people may not know, U Bank is part of the NAB group. I was trying to make a point to NAB by walking away from them when they wouldn't negotiate a better rate with me. Looks like i'll just be going to their other bank lol

        I think U Bank can be cheaper cause they have no branches. I honestly have no need for a branch so I'm ok with that.

    • Slo20 on 10/09/2018 - 17:54
      +1

      UBank don’t have 2 year fixed loans. You can get a 3 year at a rate of 3.74% (so 0.01% better) but don’t get any other benefits of package such as black credit card, complimentary insurances. UBank you also pay $395 fee to setup fixed loan. So really it comes down to year 2 onwards as where you see the longer term value.

      • [Deactivated] on 10/09/2018 - 19:22

        Is it generally ok to move home loans around every 2 years or so? I don't understand what's bad about it as the banks usually have cashback for transfer too. And, also hard to understand why comparison rate even matters if you are planning to move the loans after the fixed term is up.

        • Slo20 on 10/09/2018 - 19:37

          Yeah there’s no issues moving every 2 years. You would just need to weigh up the benefits considering there will be a credit check, loan discharge fee and the rigmarole of applying for a new loan. With banks tightening lending criteria some people may not have the luxury of switching banks easily.

  • samprofs on 10/09/2018 - 20:26
    +4

    Hey, broker here.

    This is also eligible for a $1200 ANZ refinance Cashback. I have received this switching discretion for every single ANZ refinance in the last 6 months. I am confident branch can also match it. The current switching discretion of 'up to $1,200' for eligible loans has been extended for eligible loans applications submitted by 31 December 2018 and draw by 31 March 2019.

    I personally prefer the current Bank of Melbourne/Bank SA/St George Bank 3 year fixed @ 3.85% p.a and $1500 cash back. Also remember to 'RATE LOCK'. This ensures that you will get this rate between approval and settlement (it can take up to 1 month for both banks to book in a refinance settlement)

    The other advantadge of StGeorge/Bank of Melbourne is that they have a process called FastRefiance meaning that they will pay out the existing lender without having to wait for a physical settlement with the outgoing financial institution. This means that most loans can settle within 3 days of the loan documents having been signed.

    Hope that helps.

    Sam

    • ely on 10/09/2018 - 22:15

      What's the BoM variable rate to go with that? Any other establishment/fix/rate lock fees? Any wiggle room on that 3.85%?

      Edit: comes with $395 annual fee, seems like that would eat away most of the cashback over the three years… Negotiable? Seems like everyone is getting them waived up above!

      • samprofs on 10/09/2018 - 23:21

        1.4-1.45% off the SVR. The revert rater can also be pre-negotiated. I have not seen BOM waive their annual fee.

        3.69% on NAB Base Variable + $1250 cashback is good if you just need a basic product with a free unlimited redraw.

        In terms of a long-term good product with zero fees and full features such as 100% offset- Vow Home Loans by Macquarie Bank is 3.65% with up to 2x 100% offset accounts and the 3 years fixed rate is 3.84% per annum. The fixed revert rate is also 3.65%. No annual package fee even though it comes with the offset accounts. The Vow/Macquarie product already includes their recent rate rise.

        Options galore out there. Key is to first try an negotiate with existing bank's retention team and then do your research.

        • endolphin on 11/09/2018 - 00:43

          Macquarie seems like a no brainer based on that then? Do you have a link? I was seeing 3.85% on their website.

    • spitfire6 on 25/09/2018 - 23:24

      Hi Sam, interested. PMed you.

  • peterpeterpumpkin on 10/09/2018 - 22:27

    Assuming at least a couple of you have rented investment properties, does that $395 package fee count as a deduction?

    I'd ask an accountant but I want what Gerry would call "professional" advice.

    • Slo20 on 11/09/2018 - 05:14

      The pckage fee does count towards account keeping fees, however if you also have your owner occupied loan under the same package it makes it messier and you’d have to allocate the portion that is for investment purposes.

      • peterpeterpumpkin on 11/09/2018 - 06:24

        Thanks for getting back to me.

        I thought that would be the case but I couldn't see the fee incorporated from the first year the loan was switched to an investment half way through the year (unlike all the other expenses). I don't see it listed as a "borrowing expense" (only those government and conveyancing fees incurred upon purchase, depreciated over 5 years). Nor do I see it listed as a sundry expense (where monthly banking fees were categorised). It was an H&R Block production.

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