Understanding your home loan

What's on this page

• Where can I view my loan balance? 
• What is a comparison rate? 
• How is my interest calculated?
• What happens when interest rates change?
• How can I pay my loan down sooner?
• What is an Early Repayment Cost?

Where can I view my loan balance? 

Once you’ve registered for ANZ Internet Banking (and linked your home loan to it), you’ll be able to manage your ANZ Home Loan wherever you are 24/7, as long as you have internet access.

You’ll be able to see:

• Your current loan balance, interest rate and loan term details (you can even do this in ANZ goMoney™)
• The loan payment schedule
• Details regarding your linked ANZ One offset account (if you have one)

You can also make changes to your existing Direct Loan Payment or add a new Direct Loan Payment to your account.

What is a comparison rate? 

A rate that helps you work out the true cost of a loan. This rate takes other fees and charges into account, like a loan approval fee and loan administration charge in addition to the interest rate. It’s meant to be a fairer way of comparing how much a loan will cost you.

For more information visit https://www.moneysmart.gov.au/.

How is my 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.

What happens when interest rates change? 

If you have a variable rate home loan or residential investment loan, interest rates may have an effect on your repayment amount. An interest rate rise may mean your required repayment amount goes up, while a fall in interest rates may result in your required repayment amount going down. If you have a fixed rate home loan, your minimum monthly required repayment will not change during the fixed period.

How can I pay my loan down sooner?

If you have an ANZ Standard Variable Rate home loan, there are a few different ways you may be able to pay your loan off sooner:

• You can choose to increase the amount you repay or make an extra lump sum payment. 
• If you don't want to make a lump sum payment or increase your repayments, then you could think about making repayments on a fortnightly basis rather than monthly. You’ll pay a bit more in the short term but reduce your interest in the long run.
• Making use of your ANZ One offset account^disclaimer is another way to save on interest payable. Linked to an ANZ Standard Variable Rate or one-year ANZ Fixed Home Loan, the money you have in the ANZ One offset account will offset the amount you owe on your home loan, and you'll only be charged interest on the difference.

What is an Early Repayment Cost? 

Fixed rate loans give you the certainty of fixed repayments and provide us with certainty about the interest we'll receive over your fixed rate term. This allows us to make hedging and funding arrangements to match our customers' lending needs.^disclaimer In making these arrangements, we incur interest costs. If you repay some or all of your fixed rate loan early or switch to another fixed or variable interest rate before the end of your fixed rate term, we'll need to change our funding arrangements. The Early Repayment Cost helps us recover a reasonable estimate of the cost incurred in changing those funding arrangements. 

ANZ Fixed Rate Loans - What happens if you repay some or all of it early? (PDF 196kB)