Important information about requesting COVID-19 Assistance on your Home Loan
What COVID-19 Assistance are we offering?
We are offering to put your home loan repayments on hold for 6 months. While this means you do not have to make repayments for 6 months, interest (and any applicable fees) will continue to be charged during this period.
This unpaid interest will be added to your total loan amount and will need to be paid back over your remaining loan term. If you accept our offer to defer your repayments, you have two choices about what happens after the 6 months’ assistance period:
- Keep your original loan term: You can keep your original loan term and the repayments will be adjusted to ensure you pay the loan off over this term. If you choose this option, your repayments will be adjusted at the end of the 6 months.
- Extend your loan term: You can extend your loan term by 6 months (i.e. equal to the time your repayments were on hold). If you choose this option, your new repayments will be adjusted at the end of the 6 months as well.
At the end of the assistance period, your adjusted repayments under both options above will be higher than your current minimum repayments. This is because, for option 1, you will be paying off a higher amount over the same remaining loan term and, for option 2, you will be paying off a higher amount but will have a longer period to do so (and interest is incurred during that longer period). Also, while the increase in the minimum repayment amount under option 2 will be smaller than under option 1, choosing option 2 will result in you paying more interest overall.
Please note that the above comparison of the options assumes that there are no other changes to your loan over the remaining term, that you have no funds in offset or redraw, that you do not make any repayments during your assistance period, and that you have been making minimum repayments only (and will continue to do so). If your actual circumstances are different (or change in future), the impact on your minimum repayments and the amount of interest you end up paying may be different to the above description – we will always notify you if your repayments change.
You may pay more interest
If you accept the COVID-19 Assistance, you may end up paying more interest over the life of your loan. As mentioned above, the actual interest impact will depend on your particular circumstances, including whether you keep your original loan term or extend it. You can learn more about what each of those options could potentially mean for your new repayment amount and the overall amount of interest you’ll have to pay over the life of the loan here.
You may have other options
As you could end up paying more if you accept this offer, before you make a decision, please take time to think through other options you may have to check if they are suitable for you and to consider what impact they could have on your loan arrangements. We have set out some options to consider at the end of this offer.
Jointly held loans
If there is more than one borrower on your home loan, it is important that you check that all joint account holders agree to any assistance before you accept. Once we process a request for assistance, we will write to each account holder to tell them the changes we have made to the loan. If a joint account holder tells us later that they did not agree to the change, we will need to reverse it.
We need to move any redraw balance
If you have more than $100 in available redraw in your home loan, we will need to move these funds to your linked ANZ One Offset account in order to process this assistance. If you don’t have an offset account, we will move it to the account your home loan repayments come out of. We are doing this so you can still access those funds after we put your repayments on hold. You can always transfer these funds back into your loan after we’ve processed your assistance request.
Some other things you should know
- During the assistance period, you will not be reported to credit reporting agencies as being behind on repayments or charged late payment fees.
- We will reverse any repayments you have made on this loan from the date you applied for assistance, up until the date we process your request.
- ANZ will check in with you after 3 months of your deferral period to see whether you need any further assistance.
- You may have insurance that covers you for illness or loss of employment and if so, you should check your Product Disclosure Statement. If you have ANZ insurance, click here to check whether it may cover you for COVID-19.
An important reminder
ANZ’s COVID-19 Assistance is designed to help you during a difficult time, but it is temporary assistance only. Please think carefully before deciding whether to accept assistance, and remember that taking up assistance does not prevent you from making repayments on your home loan (if it turns out you’re able to do so). Continuing to make some repayments, even if the amount is smaller than you used to be able to pay, may mean you end up paying less interest over the life of your loan.
Accepting this offer
To respond to this offer, please select one of the following three options:
- I choose option 1 to keep my original loan term. I understand and agree to this assistance and change to my credit contract and understand that if I have more than $100 in available redraw, it will be moved to my transaction account. If there is more than one borrower on the home loan, I confirm that all borrowers agree to this assistance and to choosing option 1.
- I choose option 2 to extend my loan term. I understand and agree to this assistance and change to my credit contract and understand that if I have more than $100 in available redraw, it will be moved to my transaction account. If there is more than one borrower on the home loan, I confirm that all borrowers agree to this assistance and to choosing option 2.
- I would like wait to receive a call from ANZ to discuss my application.
Thank you for your patience and take care,
ANZ Customer Connect Team
Other options to consider before deciding whether to accept ANZ’s COVID-19 Assistance offering
Are you ahead on your repayments?
If you’re ahead on your repayments, you may not need to do anything for the time being. This is because if you have made extra payments in advance and you don’t make a scheduled repayment when due, ANZ will use those extra funds to meet that scheduled repayment, meaning you keep up to date with your home loan.
Do you have funds in other accounts?
You may have funds in your linked offset account or in another savings or deposit account (including with other financial institutions), which you could use to make repayments.
Do you have available funds in redraw?
If you’ve made extra repayments on your ANZ Variable Rate home loan, you may be able to access your redraw balance first and could use that money to make loan repayments. Your redraw balance is the amount that you have already paid off on your home loan in excess of the minimum repayments required. Keep in mind that if you redraw funds, the amount redrawn will be added to your loan balance and interest will be charged on that higher loan balance (but there may be ways you can reduce or offset that additional interest, e.g. for eligible loans, you could move the redrawn funds to the offset account linked to your home loan, if you have one). If you decide to redraw, you can transfer these funds to your linked transaction account using ANZ Internet Banking.
Can you reduce your repayment amount?
You may be currently paying more than the minimum repayment amount on your home loan (which could help you pay less interest on your loan overall). If you’re doing this, you have the option to reduce your repayments to the minimum (but this could mean you take longer to pay off your loan and pay more interest as a result). If you decide to reduce your repayments, you can do this through ANZ Internet Banking (click here for instructions).
Can you access funds under insurance policies?
You may have insurance that covers you for illness or loss of employment. If you do and you’re eligible to receive payments under that insurance, you could consider using that money to make your loan repayments. If you have ANZ insurance, click here to check whether it may cover you for COVID-19.
You can find the details of the amounts available in your ANZ redraw, offset and other deposit accounts on ANZ Internet Banking.
If these options are not suitable for you, you may decide to apply for ANZ’s COVID-19 Assistance offering.