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ANZ breakfree package

Discussion in 'Property Finance' started by Steve_B, 1st Feb, 2016.

  1. Steve_B

    Steve_B Member

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    Hi everyone,

    First time poster.

    Regarding the ANZ Breakfree package, I've been told, and also read, that it is a requirement to have a credit card. I'm not overly joyed about having a credit card pushed onto me. Besides I already have one from my overseas bank where I reside.

    My concern is the effect it will have on serviceability down the track. If I never activate it, will it still affect serviceability?

    I asked my broker to present me with another package and he mentioned Simplicity Plus Investment Loan but from what I've read it's not available.

    All in all it has been a very long process to get finance for the new IP purchase as I'm an overseas resident. Plus had to refinance with NAB to release equity from the single IP we hold as it was under a Defence home loan; this is now taken care of and now just trying to complete the finance for the new IP.

    Thanks all
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The ANZ Breakfree package requires a $6,000 credit card as part of the package. They also require you to active it (or you won't get the rate discount).

    Depending on the lender, it might affect your future borrowing capacity by about $18,000 - $25,000. I'd suggest that if this in itself creates a significant problem, you're probably cutting things a bit fine anyway.

    I think the ANZ withdrew the simplicity plus loan for investment purposes a few months ago. Hard to be sure because it was so rarely used for this purpose.
     
  3. Redom

    Redom Mortgage Broker Business Member

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    It can be a frustrating requirement - try saying 'your not comfortable with credit cards', may be able to get away without it. Haven't tried it before, but have been told by people in the industry it can be a way to get around.

    I think your right Peter about the simplicity plus - when all the investment loan changes went through they removed it.
     
  4. thatbum

    thatbum Well-Known Member

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    I heard you could just cancel the card later...?
     
  5. Steve_B

    Steve_B Member

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    Thanks Peter.

    Is it common for bank loan products to require you to take a credit card with them? My thinking is if each time we want to purchase an IP and we're required to take a credit card, then our serviceability will reduce a lot quicker.

    As for right now, serviceability is not an issue as my wife and I earn good tax free salaries in the UAE.

    Cheers
     
  6. MC1

    MC1 Active Member

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    Activate it then cut it up ... whats the big deal.
    If a $6k cr card is going to effect your serviceability, you got a lot more to worry about than the credit card
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Don't stress about it, the ANZ Breakfree package is the only one where it's a requirement that I can think of off hand. As MC 1 has said, activate it and cut it up.

    Incidently if you take the patnum option, it's not bad on the Qantas FF points either.
     
  8. wobbycarly

    wobbycarly Well-Known Member

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    We had a package with Mac Bank that required a CC, too. Ours was a $25k limit if I remember rightly! :eek: Never used it, and have since re-fi'ed away.
     
  9. Coota9

    Coota9 Well-Known Member Premium Member

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    Can the card be kept but just reduce the limit?
     
  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The default $6000 limit can be reduced, but they put you through extremes to justify it.
     
  11. Coota9

    Coota9 Well-Known Member Premium Member

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    I see..... I may have to rethink "I have a wife" excuse than!!:D
     
  12. Redom

    Redom Mortgage Broker Business Member

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    I think Macq do it too from about middle of last year on their home loan package - smaller limit (2k) from what i recall.
     
  13. Sonamic

    Sonamic Well-Known Member

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    Breakfree comes with a 10k card as standard. I managed to talk them down to 5k, but there is was no way they were going any lower. They won't let you cancel it either as it is part and parcel of the Package.
     
    Coota9 likes this.
  14. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I'm pretty sure I've had clients just refuse it.

    Agree with above though - just cut it up and bin it if it's not needed.
     
  15. Maadha

    Maadha Member

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    I have just got this product and was able to swap the CC to the low rate one with a 2k limit
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    as an aside IO extension can be like NAB

    Painful full apps..............

    ta
    rolf
     
  17. MC1

    MC1 Active Member

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    Are you talking about ANZ?
     
  18. MC1

    MC1 Active Member

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    Its $6k standard
     
  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Indeed

    the nc process in our experience can be a pain unless you have a dedicated banker to work it .

    tick and flick processes that can be relied upon every time are our preference

    ta
    rolf
     
  20. MC1

    MC1 Active Member

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    I have a completely different experience with them. Non LMI takes me all of two minutes online on the broker website .... would have processed 10 renewals in the last month without issue.
    Original LMI deals can be a pain