Buying your next home

When you purchased your first home, it’s likely you saved a sizeable deposit. Now that you already own your first home, any equity that you’ve built up in that property could be put towards the deposit on your next home. This means you could potentially buy your second home with little or no cash deposit depending on your circumstances.

Depending on your income, living expenses and how much you owe on your home loan, you might be able to refinance or apply for a supplementary loan, using your home as security. However, you should understand that the more you borrow against the value of your home, the higher your repayments are likely to be. This also means you could be at greater risk of losing your home if you cannot meet those repayments. You should seek advice from your financial adviser and registered tax agent before engaging in such a strategy.

If you have equity in your home or an investment property, you can talk to an ANZ Home Loan Specialist^disclaimer about how you may be able to take advantage of your equity to buy your next property.

Working out how much you can spend on a property is a big decision. When you start house hunting, you might want to apply for pre-approval to estimate how much a lender will let you borrow. ANZ home loan pre-approval gives you more certainty of how much you can borrow. You can also apply to see if your pre-approval can be extended, giving you extra time to find the right property.

Apply for ANZ home loan pre-approval 

A bridging loan helps you buy a property before you sell your current home, which could give you some breathing space to get your current home ready for sale.

Just like a traditional home loan, you can get pre-approval on bridging finance – so you can house-hunt with confidence knowing how much you could borrow.

You may be able to borrow up to 80% of the value of the new home (known as your Loan to Value Ratio, or LVR).

With ANZ, you have up to 12 months from when you settle on your new home, to sell and settle on your current home. This gives you time to prepare your home for sale without a rush, and to plan for settlement.

Find out more about ANZ bridging loans

A comparison rate is designed to help you work out the total cost of a home loan by building the known costs like up-front and ongoing fees into that rate. It doesn’t include things like government charges, redraw fees or fee waivers. 

You can use comparison rates to help you compare the cost of different home loans with similar features. When deciding which home loan is right for you, it’s important to think about what features each home loan offers, and how much these matter to you. Keep in mind that you may not necessarily pay the comparison rate that is advertised for your loan type.  This is because, for example, you may not pay all the fees and charges which the comparison rate includes.

If you choose interest only, the minimum payment amount on your loan will be lower during the interest only period because you are not required to repay any of the loan principal. You will have to repay the principal down the track and so you may end up paying more over the life of your loan. There may be additional restrictions on the amount you can borrow or loan type you can select if you choose to pay interest only.

Choosing to repay principal and interest means that, with each repayment, you're paying off interest charges as well as some of the loan principal.

Learn more about payment types.

LVR stands for 'Loan to Value Ratio' and it's the amount you’re looking to borrow, calculated as a percentage of the value of the property you want to buy (as assessed by ANZ). For instance if you’re borrowing $400,000 to buy a $500,000 property, your LVR would be 80% (because $400,000 is 80% of $500,000).

LVR is important because it may affect your borrowing power. Generally, the lower the LVR the better, as it carries less risk for the lender. If your LVR is above 80% (that is, you're looking to borrow more than 80% of the value of the property you want to buy), you may need to pay Lenders Mortgage Insurance (LMI). This insurance protects the lender - ANZ, not you - if you default on your home loan and there’s a shortfall following the sale of the property. Generally speaking the higher your LVR, the more LMI will cost.

Learn more about ANZ LMI with our Key Fact Sheet (PDF) or read our article on Lenders Mortgage Insurance.

*Property value is ANZ's valuation of the security property and may be different to the price you pay for a property.

To estimate home loan repayments with a new home loan

1. Enter the details of the type of home loan you’re looking for then choose an ANZ rate from the interest rate drop down. 
2. You can ‘Add a new scenario’ and choose a different ANZ home loan rate to compare estimated repayments for different scenarios side by side.

To compare current and future estimated repayments based on a different rate

1. Enter the details of your existing home loan. If you have a redraw balance on your loan, add that amount on top of your existing loan amount. For instance if you have a loan balance of $600,000 plus a $50,000 redraw amount, enter $650,000 as your loan amount. Any redraw balance will have an effect on your estimated repayments.
2. Choose ‘Enter my own interest rate’ and enter your current interest rate to see your approximate current repayments. (To check your current interest rate, log in to ANZ Internet Banking and click on your home loan account, or in the ANZ mobile app tap your home loan account and go to 'View home loan details’.) 
3. Tap ‘Add a new scenario’ and either choose an ANZ rate from the drop down menu or enter your own rate to see estimated repayments based on the different rate.
4. Compare your current and estimated new repayment for a different scenario to see the difference.