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Home loan Frequently Asked Questions


If you're looking to borrow more than 80% of the value of the property you're looking to buy (as determined 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’. Even though you pay the premiums, LMI protects the lender (ANZ, not you) if you default on your loan. For some property types, LMI might be required when the LVR is less than 80%.

Learn more about ANZ LMI with our Key Fact Sheet (PDF 370kB).

Let's put it this way: if you choose interest only, the minimum payments of 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.

   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.

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.



   Which loans can be linked to ANZ One?

  • ANZ Standard Variable Rate Home Loan
  • ANZ Standard Variable Rate Residential Investment Loan
  • ANZ Fixed Rate Residential Investment Loan – 1 Year Fixed
  • ANZ Fixed Rate Home Loan – 1 Year Fixed
  • ANZ Standard Variable Rate Residential Investment Land Loan
  • ANZ Standard Variable Rate Residential Land 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 App, 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.

   Where can I purchase/apply for a deposit bond?

ANZ does not offer deposit bonds. Please contact your legal or financial adviser who may be able to provide you with more information about deposit bonds.

The ANZ App is provided by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Super, Shares and Insurance (if available) are not provided by ANZ but entities which are not banks. ANZ does not guarantee them. This information is general in nature only and does not take into account your personal objectives, financial situation or needs. ANZ recommends that you read the ANZ App Terms and Conditions available here for iOS and here for Android and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.