ANZ breakfree package

[jazzlobber]

Hi there,

I'm looking for opinions on this mortgage package, this is what our broker has recommended for us. Appears i can get 0.7% off the standard variable which i believe will be 7.37% PA; it comes with a 340 dollar annual fee which is not too bad.

We been told it includes 100% offset and redraw facilities.

Has anyone experience with this mortgage account, any comments positive or negative appreciated; or any other policies you would recommend?

our situation is :

both mid thirties, both in good employment; 150K pa gross for combined incomes. We are looking to buy PPOR in the 500-650k range in Melbourne, with deposit of 300K; so mortgage around the 200-350 mark; which would give us a comfortable max of 30% net salaries to spend (at the 350 limit) on PPOR P&I over 30years.

general idea is to buy PPOR using large deposit then draw on the equity using redraw / LOC for deposit on a couple of investment properties etc.

Would this ANZ breakfree package suit. I have not been able to see any information on ANZ website about this breakfree package and the Terms&Conditions booklet that came from our broker doesn't really go into detail about what this package is suitable for and the elements it contains etc

Can anyone point me in the right direction, appreciate any advice offered

cheers

 

[jazzlobber]

ah, i ask question too soon, i've now found some info on their website about features and benefits;

but still any comments appreciated from people in the know

http://www.anz.com/aus/promo/Breakfree/

cheers

 

[WillG]

Looks good. Similar to the Westpac premier Advantage package aimed at investors.

The $340 annual fee is cheaper than Westpack fee which is $400pa.

As I haven't dealt with ANZ, I cannot really comment on their service. If you can get a personal banker it would be good.

I would check the charges for establishment fees, valuations, credit card annual fees etc

How do they make equity available ? Are there charges(not including additional interest) for accessing existing equity.

 

[APerry]

Hi Jizzlober,

ANZ's products are fine, I can't say the same about their service levels. Unless you are using a trust with a corporate trustee I would suggest using Westpac's Premier Advantage package. If you end up purchasing a few investment properties you will end up with a better rate through Westpac also, as they are far easier to negotiate volume discounts with.

Regards
Alistair

 

[lyynx]

We've been using the ANZ breakfree for about 5 years now, we got it with our first loan and now have two (had three but refinanced two into one).

Its brilliant. I love having a free credit card. I pay out my card every month automatically so pay no interest. I can use my credit card in ANY ATM and incur no fees for doing so.

We pay $295 a year and get all of the discounts. It was worth doing for just one loan... I think we saved $890 per year in interest which more than covered the $295 cost. Also you'll note I'm paying less than the price you said as once you join the fee doesn't go up, only for new membership does it increase.

You get a bigger discount if you have over a certain amount borrowed (I forget what it is, I think up to 250K gives .5% and over 250K is .7%? going from memory...)

Unfortunately we've hit a wall with ANZ though. We had to show full financials for my wife as she is self employed and the initial conversation our broker had with them was that everything looked fine. Upon application we were told we needed the financials which due to deductions etc won't show enough. Broker said we'd take all of our business else where and the reply was "so be it."

I guess we don't owe enough money to them for them to bother with them wanting our custom. It's a shame, as until now we've been really happy with ANZ.

So bottom line is, Breakfree package is great but don't expect anything from ANZ like being valued as a customer. I dare say that goes for all of the banks which is a shame. Everyone seems too focused on making money and forget that there are families with goals on the other end.

Thus the nature of a system driven by greed and fear.

 

[tubs]

I use the breakfree package too. THe only problem is that you can only put 5 loans on it, so if you redraw for other properties and create other loans, you may hit the limit and miss out on the 0.7% discount.

The rules over % rate reductions are as Lyynx said, and I have found the package to be quite good. I believe many brokers recommend it.

 

[JFisher]

Richard Taylor who is often on this forum and propertyinvestor.com also has recently set us up with the ANZ breakfree package. After being with the Bendigo Bank and then CBA (eek), I have been a very happy ANZ customer for a few years now but the interest rates/flat fee we got through the MB (Qlds007) were better than anything I could get by walking in and speaking to the personal AND business banking managers. Operating our own business may have made it different for us though, although we have been doing it for nearly 8 years without too many hiccups.

The local branch manager told me in a phone call after she saw some paperwork from my MB that the main bank (and the business banking section we also deal with) weren't allowed to recommend this package to me directly or they could be fired?? So obviously there is a front door, a back door and a side door to the bank. You just need to find someone who is already going in the side door or back door and walk in with them....

I will be waiting to see how it works out for us also as I know that it has impacted on our ability to borrow for business purposes. I have never had a credit card with a limit like that before so I will be keeping a close eye on that.

Julie
Daryl Fisher Homes

 

[poppy]

We also use the ANZ Breakfree.

We get .7% off, apparently there was a "special" on at the time we got the package, .7% off for $250,000+

With our first couple of loans they took quite a long time (6-8 weeks) before the loan funds were available, and there was a lot of stuffing around/mistakes. However they have improved lately and our most recent loan was done in a reasonable timeframe.

They also seem to have given us a couple of extra valuations without charging us and have given us loans despite me being a contractor.

 

[Rolf Latham]

Hiya

AS with all things, some packages will suit some better than others.

Breakfree is good, if you will do more than one loan appln with ANZ, their pro pack is also not a bad option.

Service levels are fine for us (at the moment) , generally 48 hrs to formal approval, much depends on what processing team you get and what the relationship manager will do.

Like APerry has said, WBC , may be a better option for many applications.

ta
rolf

 

[jazzlobber]

thanks for all the inputs guys and gals, appreciate it, hopefully will get the PPOR and first IP this year sometime, i will need to research and investigate whether we setup a trust to purchase ip's as i have no understanding of them at the moment. I will have to do a few more searches - thanks again

 

[hobo-jo]

What exactly does this package offer that can't be found anywhere else? I thought .7% off the variable rate was a special that was available almost everywhere through brokers/banks. You can get credit cards with no annual fee already. It seems to me that you are paying $340 a year for a phoneline that may get you through to a consultant faster...Unless someone can fill me in?

 

[JFisher]

What exactly does this package offer that can't be found anywhere else? I thought .7% off the variable rate was a special that was available almost everywhere through brokers/banks. You can get credit cards with no annual fee already. It seems to me that you are paying $340 a year for a phoneline that may get you through to a consultant faster...Unless someone can fill me in?

Here you go Hobo-jo

The flat fee of $340 in the breakfree package covers -
- Discounted premiums for Home insurance and Landlord insurance.
- 10% Discount off Mortgage protection if needed.
- 0.5% discount on Car Insurance
- 0.35% discount of some Margin Lending facilities.
- No annual account fee on credit card
- No transaction fees or monthly account fee on Anz Access or ANZ one offset.
- 100% mortgage offset with no monthly account fees
- No Credit fees on an Anz Assured over 1K
- Special bonus interest rate on ANZ progress saver.
- Discounts on telegraphic transfers and drafts sent O/S at ANZ branches
- .5% discount of SV rate for home,resi invest, equity loan and equity manager facilities over $150k.
- .6% discount of SVR as above if over $250k
- .7% discount of SVR as above but over $700k
- No LOAN approval fee on you rchoice of up to 5 home,invest or equity loans
- No monthly loan admin charge on Anz money saver or Easy start loans
- No annual credit facility fee on Anz equity manager facility
- Mortgage renegotion fee will be waived once per package per annum for
- Anz loan products
- No loan approval fee, no loan admin charge and .5% interest discount on an - Anz variable rate personal loan.
- No establishment fee on Anz car loan.

Straight out of the brochure I just received in the mail. Hope that helps.

Julie Fisher

 

[tubs]

OH, and BTW they changed the rules for calculating the discount some time ago. I'm sketchy on the details, but they made the 0.7% discount applicable to ALL loans under the package if your total package was worth over a certain amount. Previously, your loans had to be a certain amount individually to get the dscount, so smaller loans in the package were excluded.

But this doesnt happen automatically, so if you've been on the package for some time, give them a call to confirm the details and get changed over.

AND make sure you ask for your repayments to be recalculated to the minimum, otherwise they continue to charge the same repayments and just put more towards the principal.

Tubs

 

[JFisher]

OH, and BTW they changed the rules for calculating the discount some time ago. I'm sketchy on the details, but they made the 0.7% discount applicable to ALL loans under the package if your total package was worth over a certain amount. Previously, your loans had to be a certain amount individually to get the dscount, so smaller loans in the package were excluded.

Tubs

Yes, I think this is what you mean tubs, I'll expand on my abbreviated version for you.

0.5% discount off standard variable rate home loans, residential investment loans, home equity loans, and equity manager facilities with an individual value between 150K and 249.999k.

0.6% discount of same products except it is for individual or combined lending of $250k or more (as agreed with ANZ).

0.7% off standard variable rate home loan and residential home loan with an individual or combined value of $700k or more (as agreed with ANZ)

It also mentions in the fine print that all money saver, easy start and fixed rate loan products are ineligible for interest rate discounts.

 

[Peter_Tersteeg]

ANZ knows that most of their competitors will do a loan over $250k at a 0.7% discount. They'll match it every time if you ask for it.

 

[ruroshin]

0.7% off standard variable rate home loan and residential home loan with an individual or combined value of $700k or more (as agreed with ANZ)

I applied for a refinance in december last year and the borchure I got also said 0.7% off for individual or combined value of $700K. Mine was about 580K but I got 0.7% off anyway. I quized the ANZ mortgage manager about this and this is what she said:

The 0.7% dicount on lending over $250K was introduced after the Brochures were printed & only a special promotion for the moment. We have not been advised of the end date for the promotion as yet.

So AFAIK 0.7% is for loan over 250K until they call it off.

 

[JFisher]

I'm not suprised ruroshin as Richard got us 0.7% off and we had less than half that. Pays to renegotiate regularly it seems.

 

[kero]

i am also an existing package customer... not bad i would say, except they bloody lost my mortgage docs TWICE (same loan application) when i wanted to draw equity to buy some shares.

anyhow, i read on the 'smart investor' that 'rate buster' tops for mortgages... 6.92% variable... they got the lot like offset account, withdrawal facilities and others... didn;t look into the details though...

anyone had a loan or experience with 'rate busters'?

 

[jingo]

We have refinanced our loans over from ANZ to One Direct. One Direct is operated and backed by ANZ. (Operated directly from ANZ in South Melbourne and uses their systems and loans you ANZ's money!). They have given us a deal of 6.95% for our loans. (3 year fixed rate) May be worth you comparing what they can offer you considering you are an ANZ customer. Can supply name of consultant we dealt with if you are interested.

 

[alexlee]

I was just looking at the one direct site. Their loans don't seem to have offset accounts? If you're going to be switching PPORs at some stage, an offset is essential.

Think about it: why would ANZ market through One Direct if it's the same loan? Answer: it's not. It's a no frills version which doesn't have as many bells and whistles. For me the biggest issue is the lack of an offset account.
Alex