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Home loan Frequently Asked Questions

 

   What are LMI and LVR?

If you need to borrow more than 80% of the amount your property is valued at by ANZ you may need to pay Lenders Mortgage Insurance (LMI). Banks often call this percentage the ‘LVR’ , which stands for ‘Loan to Value Ratio’. LMI protects the lender if you default on your loan. For some property types, LMI might be required when LVR is less than 80%. 

   Principal and interest, or interest only?

Let's put it this way: if you choose interest only, your minimum repayments will be lower during the interest only period because you are not required to repay the principal balance. You will have to repay the principal down the track and you will pay 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 you're actually paying off the total loan amount over the period of the loan, not just the interest charges. Learn more about repayment types

   How is interest calculated?

Interest is calculated based on the unpaid daily balance of your loan. For example, if you had a loan balance of $150,000 and your interest rate was 6% p.a., your interest charge would be: $150,000 x 6% divided by 365 days = $24.66 for that day. For most ANZ Home Loans, interest is usually calculated daily and charged monthly. For details refer to the ANZ Consumer Lending Terms and Conditions (PDF 412kB) and your letter of offer.

   Should I get an offset account?disclaimer

If you have money in an everyday banking account, you may choose to move it into an ANZ One offset account. You can link it to your ANZ Standard Variable loan or one-year ANZ Fixed loan to help you save on interest charges. The money you have in ANZ One will offset the amount you owe on your home loan, and you’ll only be charged interest on the difference.

   What is equity?

Equity is the difference between the value of your home and how much you owe on it. And that value isn't necessarily what you paid for your home, as it may now be worth more. For example: if your home is worth $500,000 and you still owe $300,000, you could have up to $200,000 in equity.

 

ANZ One

   Which loans can be linked to ANZ One?

  • ANZ Standard Variable Rate Home Loan
  • ANZ One Year Fixed Rate Home Loan
  • ANZ Residential Land Loan
  • ANZ Supplementary Loan (if it's ANZ Standard Variable or ANZ One Year Fixed loans)
  • ANZ Variable Rate Residential Investment Loan
  • ANZ One Year Fixed Rate Residential Investment Loan

   How much does ANZ One cost?

ANZ One has a $10 monthly account fee and unlimited ANZ transactions. The account fee is waived if you're on an ANZ Breakfree package.

   Can I have my pay deposited into an ANZ One offset account?

Yes, it is up to you how often and how much you deposit into your account. You can make regular deposits as well as one-off deposits.

   Can I still access my funds in an ANZ One offset account?

Yes, you can still access your funds via ANZ Internet Banking, ANZ goMoney®, ANZ Phone Banking, ANZ ATMs, Visa Debit, EFTPOS and in branch at no extra cost.

Deposit Bonds

   Where are Deposit Bonds accepted?

Deposit Bonds are legal and available in all States and Territories. We recommend that you check with the vendor for acceptance before purchase.

   Can a Deposit Bond be used at an auction?

A Deposit Bond can be used at auctions. The bond amount is fixed but the property details are left blank, so you can attend a number of auctions and have a bond available for the deposit if successful. The vendor and the property details can be completed by you when your bid is successful.

   Can you get a refund if the Deposit Bond is not used?

Once the premium has been paid and the bond has been issued, you won't be able to get a refund.

   Who can purchase a Deposit Bond?

A Deposit Bond can be purchased by

  • Existing property owners who wish to purchase another property
  • Property investors who wish to expand their property portfolio 
  • First home buyers.

Deposit Bonds could be an option for home buyers who have funds tied up in investments or in their home, and need to provide a deposit. They can also be used for purchasing off-the-plan property. 

Note that a Deposit Bond can only be issued when we've approved unconditional finance. 

   How long is a Deposit Bond valid for?

ANZ Deposit Bonds have expiry dates of 3 months or 6 months. Deposit Bonds will no longer be valid when the contract of sale is completed, terminated, rescinded or the expiry date occurs - whichever occurs first. 

It could also expire when a claim is paid by the guarantor, QBE Insurance (Australia) Limited ABN 78 003 191 035.

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Terms and Conditions, fees and charges apply. Refer to ANZ Personal Account Fees and Charges booklet (PDF 139kB).

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