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ANZ 2.68% Fixed 2yr Home Loan + $4000 Refinance Rebate + 0.3% Bundle Rebate

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ANZ 2.68% Fixed 2yr Home Loan + $4000 Refinance Rebate + 0.3% Bundle Rebate
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AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 00:26 anz.com.au (4767 clicks)
Last edited 05/02/2022 - 21:45 by 3 other users

Lowest ever fixed rate for a big 4 bank!

2.68% (CPR 4.40%) fixed 2 year owner occupied P&I home loan + up to $3,500 rebate +0.3% Bundle rebate!
Update 3/3/20: big 4 banks have already passed on the full 0.25% cut incl ANZ. Note this is for variable rates only.
Update 9/3/20: ANZ increase rebate to $4000 refinance >$250k, once per 12 month period. exp 31/5/20

Available under 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.
Suggest doing rate lock.

ANZ fixed rates

2.68% (CPR 4.40%) fixed 2 year owner occupied P&I [3.48% interest only (CPR 4.53)]
2.88% (CPR 4.91%) fixed 2 year investor P&I
2.98% interest only investor (CPR 4.92%) fixed 2 year investor IO

ANZ variable rates

3.09% (CPR 4.65%) owner occupied P&I (Approx +0.5% interest only)
3.50% (CPR 4.87%) investor P&I (approx +0.2% interest only)

PLUS ANZ bank rebate:

$4,000 loan size above $250k

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.

PLUS 0.3% Bundle Rebate

In ADDITION to bank rebates, Bundle Home Loans gives a rebate of 0.3% of loan size (net at drawdown) for ANY bank or product.

Why should I fix?

Given lower chance of a rate cut forecast, a low fixed rate can still save you more money as you can get an immediate benefit from today as opposed to waiting for the drop to occur. Given many banks are only passing on 0.1-0.15% each cut, and the RBA cash rate is 0.75%, there can only be a maximum of 3 cuts to zero, which may take a long time or unlikely to occur.

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!

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

  • MojoMiwo on 22/02/2020 - 00:36
    +10

    CPR 4.53% seems awfully high when you can get a CPR of 2.7% ( https://www.reduceloans.com.au/ )

    • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 00:38
      +15

      We get this question every day. 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.

      • MojoMiwo on 22/02/2020 - 00:52
        +19

        Yes I agree that it can be often misleading but when the a lender such as the one above has a interest rate of 2.69 and a CPR of 2.7 it shows that they really charge very little establishment and no ongoing annual fees. Your loan is has a large difference between the 2 (over 1.5%)

        I will put a challenge to you. I will be refinancing $300000.00 within a month. Can you show me your loan to be a better option over the next 5 years.

        • AaronR on 22/02/2020 - 00:59
          +5

          I’m also struggling to see why there is such a difference in rate with no fee’s (beyond settlement) listed there.

          Please help us understand.

          • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 01:23
            +1

            @AaronR: "it shows that they really charge very little establishment and no ongoing annual fees."

            It's actually the opposite - Reduce charge approx $2000 in establishment fees, yet they can still advertise a 2.7% CPR. This is the misconception I am referring to. Pls see my comment below for my detailed explanation and screenshot of their fees.

            • meowbert on 22/02/2020 - 14:09
              +1

              @Len -Bundle Loans: Dodging the question mate, prove it's cheaper, seems to me like you can't. Mojo put a pretty simple scenario to you.

          • tehlee on 22/02/2020 - 12:11
            +4

            @AaronR: OzzyBuy has missed a massive component into the difference when it comes to comparing fixed rates using the CPR.

            On expiry of the fixed rate, it assumes you go to what the Standard Variable Rate is, not what you would be able to negotiate with the bank and actually receive.

            So if their advertised SVR is 4.83%, then it's going to use that (or their package rate) for the period of time AFTER the fixed term expiration.

            • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:03

              @tehlee: Thanks for pointing that out tehlee. This suggests ANZ's CPR is even more inflated than it should be. ANZ CPR must incorporate standard rates of up to 4.19% after the fixed expiry by definition. In reality the rate is much lower because no one pays the standard 4.79% rate or even the 4.19% rate under the package "standard discount". We have achieved discounts of 2.05% off the standard rate.

              • tehlee on 24/02/2020 - 19:42

                @Len -Bundle Loans: "We have achieved discounts of 2.05% off the standard rate."

                Well, no - that is not the right thing to say.

                You've achieved a discount of 0.15% off of the 2 Year Fixed Rate, which is the standard BreakFree Package rate.

                Unless you're giving people 2.05% off of the SVR?

                • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 24/02/2020 - 23:31

                  @tehlee: The 2.05% disc is off the standard variable rate, not fixed rate.

          • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:01
            +7

            @AaronR:

            Savings after year 2 by choosing ANZ $4,592
            Reduce Home Loans

            Product Low Rider
            Loan size $300,000
            bank rate 2.69%
            Interest/year $8,070

            Fees
            Application fee $440
            Valuation fee $250
            Legal fees $297
            Settlement fee $300
            Discharge fee $795
            Annual fee $0

            Rebates
            Bank rebate $0
            Bundle rebate 0.3% $0

            Extra features
            Offset account NA
            Premium rewards credit card NA

            Reduce home loans total cost after 1st year $10,152

            ANZ

            Product Packaged Fixed 2 years
            Loan size $300,000
            New bank rate 2.68%
            Interest /year $8,040

            Fees
            Application fee $0
            Valuation fee $0
            Legal fees estimate $0
            Settlement fee $0
            Discharge fee $160
            Annual fee $395

            Rebates
            Bank rebate -$2,500
            Bundle rebate 0.3% -$900

            Extra features
            Offset account $0
            Premium rewards credit card $0

            Total cost after 1st year $5,195

            Savings after year 1 by choosing ANZ $4,957
            Savings after year 2 by choosing ANZ $4,592
            Notes

            Comparisons made over 2 years being the years of fixed term.
            After year 2, you should (and we will help you) do one of 3 things: negotiate a lower rate, refix, or refinance.
            If you are paying the standard bank rate of 4.19% after the fixed expires, you need a better broker.
            Note the extra benefits of offset which can save you potentially thousands a year
            Note the premium rewards credit card normally $150/yr+ fees waived

        • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 01:26

          Sorry Aaron in reply to MojoMiwo

        • tehlee on 22/02/2020 - 12:12
          +1

          OzzyBuy has missed a massive component into the difference when it comes to comparing fixed rates using the CPR.

          On expiry of the fixed rate, it assumes you go to what the Standard Variable Rate is, not what you would be able to negotiate with the bank and actually receive.

          So if their advertised SVR is 4.83%, then it's going to use that (or their package rate) for the period of time AFTER the fixed term expiration.

          I've copied and pasted this (I wrote it to respond to another comment).

          • GreenRomeo on 22/02/2020 - 12:24
            +3

            @tehlee: I assume most people, at least Ozbargainers, would promptly refinance right at the end of their fixed period if not earlier so the SVR is not relevant much?

      • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 00:59
        +17

        The CPR for big 4 look high as they take into account the $395 annual fee x 25 years = $9,875. Ofcourse, this is an extremely high amount and it is included in the calc of the CPR but it greatly skews the CPR. 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 like Reduce which has $2,000 transactions fees (which is negligible over 25 years hence the low CPR, but you get hit at every transaction/refinance (see below). The smaller lenders have a lower CPR as they have no annual fee, but often a huge upfront/discharge fee that can be 5 x the $395 annual fee. The CPR is a very misleading number and small lenders using a low CPR look better than they are.

        Take Reduce for example, they list their rate as 2.69% CPR 2.70%. But I challenge anyone to try to find their fees on their website, especially the discharge fees. It is practically impossible and I dare say it's not an accident. Why? I only found their fees after googling forums (see screenshots here https://imgur.com/a/7DLyvnd)

        Total fees at Reduce = $2082
        $440 Application fee
        $250 Valuation fee
        $297 Legal fees estimate
        $300 Settlement fee
        $795 Discharge fee

        vs

        Total fees at ANZ $160 Plus $395 annual fee
        $0 Application fee
        $0 Valuation fee
        $0 Legal fees estimate
        $0 Settlement fee
        $160 Discharge fee

        Above excl govt fees which are equal for all lenders.

        Further, there is a reason most people are not with small lenders.
        Many online and small credit union lenders all have the characteristics:
        -        very low advertised rates,
        -        low or no annual fees,
        -        very high fees at application and again at discharge,
        -        they increase rates out of cycle much quicker than established lenders (larger banks make the news but smaller ones go under the radar and get away with it. People don’t leave due to the high discharge fees.)
        -        often no offset accounts
        -        very poor customer service and can take up to 4 weeks to discharge.

        • dualcore on 22/02/2020 - 01:28
          +3

          OzzyBuy is right. Most people are not getting 150K loans. it's apples to oranges; if you get a 800K loan then a rate difference of even 0.1% makes such a huge difference; even more than a "CPR" difference of like 1%.

        • MojoMiwo on 22/02/2020 - 01:40
          -2

          Yes but you fail to mention the difference in interest rate between 2.68% to 3.09 is 0.41% and on a $300000.00 loan equates to $1230 saving/year.
          Yes I agree your offer looks good for a big 4 bank

          If you want low interest (2.84) with little to no loan establishment fees ($110 - $192) then UBank may be an option.
          https://www.ubank.com.au/home-loans/refinance/cost-of-refina…

          • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 01:55
            +3

            @MojoMiwo: UBank is one of the business names of “ Advantedge” (AFHS Nominees Pty Ltd) and is not a bank, just like the numerous online lenders. It does not offer an offset account which may have major tax implications, especially for an owner occupied loan today which may potentially turn into an investment property in future. Always good to be aware of this before taking out a loan.

            • EssendonUser on 22/02/2020 - 03:20

              @Len -Bundle Loans: They offer redraw. I don't understand tax implications. Why cant someone use unlimited redraw instead of offset?

              • cumova on 22/02/2020 - 04:43
                +3

                @EssendonUser: Tax implications on investment properties or as above when u convert an OO to Inv. Please see a financial advisor and dont be a keyboard hero

                • greater mimic on 22/02/2020 - 15:29

                  @cumova: I'm genuinely curious, are you able to give a quick rundown of the tax implications or is it too hard to do in a single post? I'll research online if so

              • beneuto on 23/02/2020 - 00:08
                +1

                @EssendonUser: Because when you do a redraw the ATO deem it to be a new loan and subject to the purpose of that redraw.

                So lets say you take out a $500K loan for an investment property. You pay off $100K in advance. Now you want to buy yourself a $100K car for personal use so you redraw the money. The ATO says that money is a new loan and not for your investment so you cannot claim the interest on it. If however you had put the money in an offset account and took it out from there you could claim the extra interest.

                To me this is ridiculous but it is there on the ATO website. Just goes to show that the ATO cares more about process than intent. In both these cases the outcome (not including the tax implication) is exactly the same but how you did it is what counts.

            • EssendonUser on 22/02/2020 - 03:21
              +1

              @Len -Bundle Loans: Where did you get this info "UBank is one of the business names of “ Advantedge” (AFHS Nominees Pty Ltd)" from ? I know you are already aware of the fact that UBank is an Australian direct bank, that operates as a division of National Australia Bank (NAB). It was established in 2008, and provides savings products and home loans over the Internet and telephone.

              UBank operates under NAB's banking license and uses its balance sheet, risk management and technology infrastructure. UBank also participates in the Australian government's deposit guarantee scheme.

              Why to spread false info?

              • kyle on 22/02/2020 - 04:44

                @EssendonUser: UBank's credit guide says

                Our role and how we work with the credit provider

                We work with Advantedge Financial Services Pty Ltd ACN 130 012 930 Australian Credit Licence 391202
                (“Advantedge”) to provide the UHomeLoan to our customers.

            • MojoMiwo on 22/02/2020 - 22:28
              -2

              @Len -Bundle Loans: LOL nice you gave my info a negative vote. I guess if you hide the info no one will see the competition and go for a better deal.

        • kyle on 22/02/2020 - 04:49
          +6

          Agree with the negative assessment of small and online lenders. Took me like a month to get the discharge/settlement done even with the broker helping. Never again!

          • cumova on 22/02/2020 - 04:52

            @kyle: Unfortunately people do not understand the role of a broker
            Some people fit non bank lenders and their policy. Great go with them
            However if someone needs a specific feature or their getting kickback from the bank they banked with since birth? You need a solution yeah?

  • pbong1OzBargain on 22/02/2020 - 01:45

    May I know this offer is for how long? Thank you.

    • cumova on 22/02/2020 - 04:48
      +9

      ANZ just dropped their rates. I would wait for other banks to follow/economy to collapse

  • zan5hin on 22/02/2020 - 01:50

    My uncle has an ANZ home loan of 110k on 900k home, he is on disability pension and NDIS. Tried few years back to get better deal but brokers say without income, no chance.

    Would he be able to work out a way to get these rates?

    • mccarthyp64 on 22/02/2020 - 02:51
      +11

      Is there a particular reason he's sitting on ~$800k equity while on a pension and NDIS?

      • cumova on 22/02/2020 - 04:45
        +2

        Government doesnt asset test your owner occupied property. Boomers.
        But him being on NDIS i think thats acceptable no?
        However
        People working and hiding thier income through SPVechicles and living in 5million dollar mansions and still getting a pension? Not so much.

        • mccarthyp64 on 22/02/2020 - 05:06
          +6

          That wasn't my point.

          Why pay interest when you can be out of debt in a place that's probably less work to keep up.

          • Lucille Bluth on 22/02/2020 - 08:19

            @mccarthyp64: Because future proofing inheritance

          • buckster on 22/02/2020 - 09:33
            +2

            @mccarthyp64: That moment when he suddenly has large liquid assets between properties for even an instant would likely be pounced on by the government and they'd try to kick him off?

      • nomoneynoproblems on 22/02/2020 - 10:54
        +8

        Because it's probably his house. God forbid you buy a house before a housing boom and then get told you're loaded because every man and his dog wants to sub divide your property and to "move out", uprooting your life for the last 20 years. No thanks Jeff.

    • perfeksionitst on 22/02/2020 - 05:07
      +1

      I don’t believe any income assessment is required if your uncle is going from a variable rate loan to a fix rate

      • mysterytal on 22/02/2020 - 12:18

        It is required if you change lenders. My mortgage provider did not offer a fixed rate as their only product was a discounted variable rate. When I looked around for a better rate due to a reduced income I could not refinance.

    • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:13

      If he is an ANZ customer, yes.
      Otherwise, some lenders do reverse mortgage for retirees. Generally will need income, eg from a SMSF or private pension. Upside is the loan is only $110k so higher rate is not the end of the world.

  • mitsuki on 22/02/2020 - 02:01

    i'm having a home loan with westpac, owing them $210,000, not sure about the rate probably 4.xx%, every month pay around $550 with $70,000 in the offset account.
    How much do i need to pay per month if i get this? what benefits will i get by switching to it? thanks.i don't know anything about this at all.

    • Wallyt99 on 22/02/2020 - 03:58
      +2

      Any rate with a 4 in front of it is bad. VERY bad if it's a PPOR.

  • Wallyt99 on 22/02/2020 - 03:57
    +7

    The house always wins. You will (in 99% of cases) save more with a variable loan.

    • bashar20 on 22/02/2020 - 06:19
      +1

      What do you mean?

      • BobCobb on 22/02/2020 - 07:58
        +1

        Just the standard OzBargain level of reasoning.

      • john_conner on 22/02/2020 - 08:28
        +12

        Banks set pricing for fixed rate loans.
        Banks exist to maximise profits.
        Fix rate loans are for “certainty” of repayments, not lower repayments. This is evidenced that in “normal” market conditions, fixed rates are higher than variable equivalents. The only reason why fixed rates are lower than variable is when banks are reasonably certain that the variable rates will fall below the fixed rate in the near future.

        Also remember you are generally limited in your additional repayments if you fix your loan, approx 10k per year for most lenders. Note the OP wording that the fixed rate can be split with an offset account, meaning the actual fix rate loan can’t be offset, I believe. There might also be a commission clawback clause if you try to refinance before a certain period of time also. Please read the fine print before signing guys.

        • effraye on 22/02/2020 - 09:35
          +3

          +1, economy will take a massive hit due to bushfires + Coronavirus

        • Rochie on 22/02/2020 - 09:37
          +2

          Yep if you are going for a loan and can make extra repayments frequently, steer clear of fixed.

        • elvislj on 22/02/2020 - 11:34

          but why my current ANZ variable is currently paying 3.45%? are you saying it would most likely drop below 2.68%?

          • Wallyt99 on 22/02/2020 - 15:31
            +1

            @elvislj: Is that PPOR? If its not this rate doesn't apply. If it is you are paying way too much. Its easy to get 3.05. And yes, I would say in the next two years its very likely that there will be at least two rate cuts.

          • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:22
            +3

            @elvislj: I must respectfully disagree with the comments above. Generally the comments are valid re bank profits and forecasting etc but it should not dictate that you NEVER fix as the 'house always wins'. I feel many are obsessed with keeping variable, even if you pay more from now until the next cut.

            In your case, if you are at ANZ with 3.45%, then it is absolutely better to fix at 2.68%, which is 0.77% lower!! The RBA cash rate is only 0.75%! Even if they cut 3 times to zero, you are still ahead (which will never happen and ANZ will never pass on 0.75% in 3 cuts). I gain nothing by telling you to stay at ANZ and fix, but it's the correct advice.

        • FrugalDealHunter on 22/02/2020 - 17:25

          Also since the government abolished exit fees, fixed rate loans are a banks new best friend to lock customers in

          • joshmachine on 25/02/2020 - 17:12

            @FrugalDealHunter: Was on a call with ING getting my discharge form and they said I have to pay an exit fee of $350.

      • Wallyt99 on 22/02/2020 - 08:42
        +3

        John Conners post above explains it. Banks have very very good teams forecasting rate movements.

        In the course of 2 years, variable rates will be lower than the rate above. Ergo - The house wins.

        • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:29
          +2

          I must respectfully disagree. A low fixed rate can still save you more money as you can get an immediate benefit from today as opposed to waiting for the drop to occur. Given many banks are only passing on 0.1-0.15% each cut, and the RBA cash rate is 0.75%, there can only be a maximum of 3 cuts to zero, which may take a long time and the banks may never pass on the full cuts. Elvislj's scenario above is prime example.

          Eg. If it takes 6 months to cut to 2.68%, you have already fallen behind by 6 months and paid a higher rate for this period. To break even, you need the rate to be cut to BELOW 2.68% for a further 6 months, this is just to break even. Unlikely scenario for 6 months or even 2 years.

  • Ash-Say on 22/02/2020 - 05:40

    Has anyone ever tried to move from 1 fixed to another without paying penalty (specifically with ANZ)?

    • geoffs87 on 22/02/2020 - 09:09
      +2

      almost impossible

      • Slo20 on 22/02/2020 - 11:10
        +2

        almost impossible

    • tunzafun001 on 22/02/2020 - 10:20

      Only if the rate goes up. Then they can relend your money at a higher rate. In this falling rate market, a change to your fixed rate will cost $$$.

      That being said, I believe you can change a few months before the official end date without penalty. Anyone got experience in this?

    • cnrmlj on 22/02/2020 - 10:20

      We have come into some extra cash and trying to break my fixed loan. They quoted $3,500 last week. With this news of lower fixed rates, I expect it to go up. My mobile lender said she has never seen them waive break fees.

      You can pay $5000 extra into the loan each year without penalty, which I have now done for this year.

      Fixed rate finishes in September so will probably refinance to someone else at that point. Most companies tend to focus on new business even though it costs more than retention in the long run.

    • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:30

      Call ANZ for a break cost quote

  • [Deactivated] on 22/02/2020 - 07:58
    +1

    How come the information you listed here is different to the website?

    • john_conner on 22/02/2020 - 08:16
      +1

      Market segmentation.
      It’s like when you go to the cinema and it’s $20 a ticket but you can buy a groupon for $12. This is like the groupon.

      • [Deactivated] on 22/02/2020 - 08:20
        -7

        Do you mean this is under the table? So it's semi illegal?

        • john_conner on 22/02/2020 - 08:38
          +4

          It’s totally legal and nothing under the table.
          Banks get approx 40% of their business from brokers.
          So you can walk into and anz branch and ask for a loan. The loan officer can offer you a discount and it’s up to you to negotiate. Your discount is depend on your negotiating skillz. Or you can go through a broker who does millions in loans and has already negotiated a good discount, or has access to discounts not normally advertised or available to the public.

          Same as when you book a room at hotel. The hotel website is most expensive rate, but if you go through an online aggregator then you’ll get a more competitive rate. Both totally legit.

  • bohn on 22/02/2020 - 08:31
    +1

    Is there a min. loan amount? My loan is @ about 230k at the moment.

  • donamique on 22/02/2020 - 08:40

    ANZ variable rates
    3.09% (CPR 4.65%) owner occupied P&I (approx +0.5% interest only)

    Does anyone know where I can find this 3.09%? Doesn't seem to be on the website…

    • [Deactivated] on 22/02/2020 - 08:43

      Read the comment above this

      • donamique on 22/02/2020 - 08:49

        Extra 0.05% subject to approval? Not sure what you mean…

        edit: all good, I see you've asked the same question. but generally you get a fixed discount off an advertised rate which fluctuates with the bank's rate for a variable loan. will that be factored into account for existing loan holders? just tried calling ANZ but their home loan department doesn't work on weekends.

        • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:33

          This is for new customers only. Westpac has a great further -0.1% discount for <70LVR. From 3.04%.

  • [Deactivated] on 22/02/2020 - 08:42
    +2

    Could there be a commission clawback?
    If so, how long is it and how is it calculated?

    • countmein on 22/02/2020 - 10:02

      Need op to confirm but i think is normally 12-24 months

    • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:34
      +1

      Our Bundle Rebate is paid in 2 instalments, 50% at 2 months and 50% at 24 months after settlement per our Credit guide and in accordance with Lender’s up to 24 month clawback policy. For background, we are able to provide a rebate to the customer from the the commission that lenders pay us. Lenders claw back our commission up to 24 months after settlement, so that if a customer refinances/sells/discharges and our commission is clawed back, if we have already paid out rebate, not only are we doing the work for free, we suffer a loss of the rebate amount out of our own pocket. We present a signed legally binding agreement outlining these T&C's confirming our obligation to pay you the rebates, as well as the customer's obligations to return the rebate to us should a clawback event occur. Importantly, this only relates to return of our rebate given to you, we do not charge a fee for lost commission. But even if you must refinance and leave, as long as you stick with me and I help you do it, you can keep the rebate (as the new bank commission would replace the clawback). Thank you for your understanding.

      • countmein on 23/02/2020 - 23:59

        Thanks thats pretty clear now re your Bundle rebate. How about the banks rebate/commission? Would it pass to us in the first (or 2) month? And what happened to it if we refinance to other bank within clawback period (yes, refinancing through your service)?

        • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 24/02/2020 - 23:35

          Bank rebates have no clawback. If you sell then yes there is clawback of bundle rebate, but if you must refinance, as long as you stick with me and I help you do it, you can keep the rebate (as the new bank commission I receive would replace the clawback).

  • Frozensage on 22/02/2020 - 08:47

    Does this mean I can’t sell my house within 2 years as well?

    • geoffs87 on 22/02/2020 - 09:11
      +3

      no, but if you do, you will have to close out the loans at settlement and will be subject to Fix break penalties - which can be high (if the rate has moved south from your fixed).

      My current loans are:
      400k fixed at 3.69 til Nov-20
      300k fixed at 3.79 til Nov-21

      My break fees are about $12,000

      • Ulysses31 on 22/02/2020 - 20:57

        My eyes are watering, looking at that fee.
        How is that fixed rate worth… Anything good.

        • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:37

          $12k sounds high, but by staying, you are effectively paying this break fee slowly. The bank is doing you slowly.Have you calculated the cost to stay fixed at your rates until expiry? vs what could be getting eg 2.68%? It'll be similar.

          • geoffs87 on 24/02/2020 - 16:11

            @Len -Bundle Loans: Yep, just confirmed with the bank,
            400k will cost $3,800 to break (diff in interest is approx $1,800)
            300k will cost $7,400 to break (diff in interest is approx $3,500

            Unfortunately my wife is on parental leave currently (and was made redundant before she started leave), so we arent in a position to take another loan at the moment… so therefore would have to go down to our existing variable (about 3.10%)

            The difference in interest compared to paying the break fees doesn't really stack up. Very annoying - but it certainly is what it is!

  • Derro on 22/02/2020 - 08:50
    +1

    wouldn't amortization reduce the savings every year?

    IE if after 3 year my balance is now $450,000 would I still be saving $2,500 in the year or does the interest saving dwindle down over time?

    "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"

  • [Deactivated] on 22/02/2020 - 08:51
    +1

    Looks like now the rate game is in the mood of m mobile contract. Previously it was way to rip off poor souls - almost never be able to beat the bank for 2+ years fix then now it's more of retention.

    Suppose the question for ozb folks is whether fix or jump every year for rebate. ;)

  • noise36 on 22/02/2020 - 08:51

    Fixed rates are only good to provide certainty of repayments, bad idea if you want to pay less interest over the long term.

    • Frozensage on 22/02/2020 - 08:57
      +1

      Fixed rate also means no offset right?

      How do I get that 3.18% on variable? Just give anz a call?

      • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 24/02/2020 - 23:36

        Correct. But you should split the fixed with a variable for 100% offset of variable.

    • Ulysses31 on 22/02/2020 - 20:59

      What certainty… It ain't going up any time soon, let alone big. So why not just factor in a quarter percent higher in your decisions.

  • [Deactivated] on 22/02/2020 - 09:11
    -1

    Op, what is the interest only fr for owner occupied 2 years?

  • taoz on 22/02/2020 - 09:13
    -2

    Once your on variable, they will write to you whenever they feel like it and raise your rate.
    They are advertising that rate, as they would expect rates to go down.

  • suti on 22/02/2020 - 09:18

    Does Bundle Property Home Loans get paid commissions or do you work for flat fee (and rebate all commissions)?

    • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 22/02/2020 - 21:39

      Commissions. We rebate at least 50%+ of our commissions. Should be the most out there.

  • ebez on 22/02/2020 - 09:34

    I’m in the middle of a house build / construction and currently with ANZ on a variable breakfree package. Is this offer available to existing ANZ customers? Is it available during construction?

    • AssociatedLen -Bundle Loans @ Bundle Property Home Loans on 24/02/2020 - 23:37

      new customers. You can check out Westpac or ANZ offers above.

  • lucas5611 on 22/02/2020 - 09:35
    -2

    What's low doc rate

  • joerd on 22/02/2020 - 09:35

    Given that commentary read in many financial reports indicates it will come down by 0.25 soon I think this is why this fix rate is being offered. I recently just switched to Athena and they pass the 0.25 each time so far . Currently 2.84 variable could be 2.59 next pass. No fees

  • StonedWizard on 22/02/2020 - 09:45

    Why are there deals like this on refinancing, but there’s no cash back or low rate on taking out a mortgage?

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