ANZ Variable Investment Loan Rate

Switched from ING

 

From my reading here ANZ is doing 1.3% discounts for over $250k and 1.45% discounts for lending over $700k.
They were happy enough to give me 1.45% discount as an existing customer.

 

For a loan against a PPOR?

 

Owner occupied and investment loans both received the 1.45% discount, SVRs for owner occupied and investment loans are different. See the link for current SVRs

ANZ Standard Variable | ANZ

 

Ah yes, of course. With my latest purchase, it will put me in the 1MM vicinity with ANZ. I'll be demanding a 1.45% discount then!

 

They are indeed pricing very strongly now - coming to the table ready to ramp up volumes.

They've got a good overall package beyond price too.

Decent policy setting (some decent niches), consistent policy application, quick turnaround times, very good cash out policy and at high LVRs (that goes beyond what they actually list as policy), good valuation techniques - one of the very few that allow desktops at 90% - make them a very handy lender.

Downside is they only allow one offset (stupid) as part of their break free package, very conservative servicing, 75% rental income used (not great for investors).

 

Redom,

I assume this depends on the risk rating category of the suburb?

 

Yes - that would weigh in on whether a desktop can be used or not.

The way it works is ANZ have a computerised valuation system. You punch in the property details and the computer decides what type of valuation is used. Credit than accept that valuation (in most instances).

Other lenders usually have set policies - e.g. CBA allow desktop valuations for loans up to 80%, or Contract of Sale's are used for sub 80% deals <$1.5mill. ANZ work of what their system tells it to use.

The strength of ANZ credit - and brokers will likely experience this (or perhaps have different views on their own experience) - is the consistency of their policies and the way their credit teams apply them. For example, you submit a deal with St George/etc - who have a lot of similarities, sometimes they accept a contract of sale valuation, sometimes they don't. It can be quite frustrating. ANZ i find (and CBA) are very consistent with their application of policy.

 

I figured as much; thanks for your insights. I've tried getting a reval of one of my Wellington (NSW) properties through ANZ last week and I asked my banker "Can't you just just do a desktop val to 90%?" to which his reply was:

"hahahaha (etc), no. We have to get a full val."

 

Must be what the system requests out based on that location/LVR/loan amount.

When available, I find their desktop valuations relatively generous too.

Have no idea why they differ so much from lender to lender (they're desktop vals - we've removed the human out of it) - but they do vary usually within a 10-15% band between the big 4 who use desktops. ANZ in recent deals, anecdotally have been pretty good here.

 

question brokerers, will ANZ discount if part of the loan is fixed? what if part of the loan is fixed and comes off fixed term in say 4 months..will threats to leave (in 4 months) still work?

 

It'll probably work, but you might find yourself renegotiating again in 4 months with the fixed rate expiry. This could possibly be sabotaged as some lenders (I'm not sure about ANZ), don't negotiate the same loan twice within 12 months.

 

why not wait for 4 months....rates aren't going anywhere and you'll be in a better position.

 

Met with my ANZ Banker today; he didn't blink when I asked for 1.45% off, and would request approval for it. Apparently I have two older style investment loans that ANZ don't offer any more that they can't give a 1.45% discount on, but the others (under Breakfree) shouldn't be a problem...

 

@mja request that the ANZ switches the other two loans to the Breakfree package. It should be easy enough to do.

 

Will do! No idea why they weren't under the package to begin with.

 

Why didn't the banker suggest this when reviewing your pricing? It's kind of obvious...

 

Logic would say you would - but the shear number of refinances from branch-land show me that this is a conversation which is clearly not happening in a lot of branches. It's a simple cost/benefit calculation to work out whether someone should be on a package vs. sitting on the standard variable rate (and for most borrowers these days, it's an obvious YES)

 

Sometimes lenders have specials outside of a package that can be cheaper, ala CBA Westpac.

 

Paperwork something something. In the end he said he'll take care of it for me, but just letting me know that there's some work for him to do.