ANZ slashes variable rates, Breakfree package gone

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ANZ’s longstanding ‘Breakfree’ home loans are gone and the big bank has simplified its range of mortgage products with lower interest rates.

Originally announced in February, last weekend ANZ officially discontinued its Breakfree range of packaged home loans.

The home loan overhaul comes after ASIC fined ANZ $25 million under the ‘charge for no service’ penalty.

It was found that more than half a million home loan customers had not received benefits such as fee waivers or interest rate reductions worth a collective $200 million.

The Breakfree package existed since 2003.

The range of simplified mortgage products came amid a few rate cuts on standard variable home loans, including:

  • Variable standard discounted 80%: Decline of 140 basis points to 2.99% per year (comparative rate of 2.99% per year*)
  • Standard Variable Discounted Investment 80%: Decline of 140 basis points to 3.59% per year (comparative rate of 3.59% per year*)

A wide range of fixed mortgage rates were also cut by 15 basis points, including:

  • Residential Fixed 2 Years 80%: Now 3.09% per year (comparative rate of 3.01% per year*)
  • Residential Fixed 5 Years 80%: Now 4.19% per year (comparative rate of 3.48% per year*)
  • Fixed Investment 2 Years 80%: Now 3.29% per year (comparative rate of 3.54% per year*)
  • Fixed Investment 5 Years 80%: Now 4.29% per year (comparative rate of 3.88% per year*)

Other fixed mortgage rates between one and 10 years have also been reduced.

Comparison rates on fixed home loans are lower because return rates are lower.

ANZ leader Mark Hand said the simplified product range is easier for customers to understand.

“This is great news for home loan customers who only want to pay for the products and features they love and choose to use,” Hand said in February.

ANZ is the first major bank to get rid of packaged mortgages, with CBA’s ‘Wealth’, Westpac’s ‘Premier Advantage’ and NAB’s ‘Choice’ packaged loans still on offer.


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Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.



Lender

Rate Type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable – 2 years (LVR
  • Fast turnaround times, can meet 30 day settlement
  • For purchase and refinancing, down payment min 20%
  • No ongoing or monthly fees, add 0.10% compensation

Variable More details
100% COMPLETE CLEARING ACCOUNTNO APPLICATION FEES OR ON-GOING FEES

Low Rate Home Loan – Premium (Principal & Interest) (Owner Occupant) (LVR
  • No upfront or ongoing fees
  • 100% cleared account
  • Additional refunds + withdrawal services

Variable More details
ZERO APPLICATION FEESCOMPENSATION WITHOUT COST

Homeowner Accelerates – Celebrate (LVR
  • We lower your rate based on the amount you have paid back on your loan
  • Automatic Rate Matching
  • No upfront or ongoing fees

Variable More details
AN EASY DIGITAL APPLICATION

Careful variable real estate loan (capital and interest) (LVR

  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster

Careful variable real estate loan (capital and interest) (LVR
  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster

Variable More details
REFINANCING IN MINUTES, NOT WEEKS

Owner Occupied Variable, Principal & Interest (Refinance Only) (LVR
  • No application or ongoing fees.
  • 100% free clearing sub-account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Variable More details
BENEFIT FROM A REDUCED GREEN RATE*

Green real estate loan (capital and interest)

  • Quick turnaround, can meet 30 day settlement
  • Save Thousands of Dollars and Make an Eco-Friendly Choice on Your Loan for Homes Under 12 Months


Photo by David McKelvey on Flickr

The entire market has not been taken into account in the selection of the products above. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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