Breaking Free from ANZ Break FREE

[HomeBuyAU]

I have two property loans with ANZ, they are both due for a new year starting from mid Feb and I'm expected to pay the $375 I think it is for this yearly fee. I only pay one fee even though I have two loans (not crossed Collateral). I'm currently in the process of selling one property and I hope it will be completed by late Feb so probably a dew days at least after the due date. The other property will stay with ANZ as I don't plan to sell that and since my income has been low lately I won't be able to refinance at another bank. But I would like to stop paying this outrageous fee. Would it be possible to have ANZ free me from this break free crap?

 

[macca446]

Hi,
As long as you have a variable loan only and are not locked in to a fixed contract yes you can change I hope this helps

 

[HomeBuyAU]

Hi,
As long as you have a variable loan only and are not locked in to a fixed contract yes you can change I hope this helps

OK that is good news, I will go and see them then and get this changed. thanks!

 

[luckyone]

You do realise if you stop paying the fee you also stop getting any discounts off the interest rate that is associated with the package?

 

[Aaron_C]

The 'outrageous fee' would mean you get a bigger discount on your mortgage....most lenders counter a low fee with a high interest rate and vice versa.

 

[beachgurl]

You'd also stop getting a free offset and annual credit card fee if you use these products. You may have to pay a fee to transfer to a different loan product like the Simplicity Plus which is a very basic product. Be careful though, ANZ tends to ask lots of questions about current income etc if you want to alter a product so if your income has dropped you might want to ask them what documentation they need before getting to heavy on requesting a product change.

 

[Peter_Tersteeg]

Given the discounts you're likely current eligible for, I'd be inclined to continue the Breakfree package and pay the fee. It's well worth the cost.

I think you'll also find their compeditors have similar (if not greater) fee structures for similarly discounted products.

 

[HomeBuyAU]

OK thanks for the advice, tips and feedback. I was aware that there are some benefits but the interest rate is something I have to seriously consider if that changes. I will still go and see them and look at it in more details and what I'm getting for this $375 (or $31.25 per month if I look at it like that).

 

[Peter_Tersteeg]

On loans of $500k, the Breakfree package is currently at least 0.2% cheaper than the Simplicity Plus. For that amount this comes to $83/mth. Well worth the cost of $375/yr.

You may not have the current discounts available. This could change things, but it may still be possible for you to access the discounts at this time.

 

[Bradsdad]

How much will you be left owing to them? With the current climate there's every chance they may waive it for a year if they think you are intending on walking.

 

[Rolf Latham]

On a Tangent

Bit cheeky of ANZ to call their Flagship Mortgage Product ( until death)

Break Free


Their spin doctors should work for the gov : )

ta
rolf

 

[Propertunity]

Freddie Mercury would be spinning in his grave.

http://www.youtube.com/watch?v=bRdo7WXTVoM&ob=av2e

 

[HomeBuyAU]

OK, here is the deal, I went and seen them today...

I'm on 6.6% currently with 2 properties but one property is about to be settled in about 3 weeks (just after the break free fee due date)

Normally if I change I would lose the discount but I was told I can go onto a Simplicity account and still pay 6.6% (variable)

The credit card will cost around $80 per year but I might cancel it and use a debit card. It is free with the break free but I don't like having a card as I end up paying fees even when it's in balance.

I will have to pay about $5 per month for account fees

I pay about $25 for insurance through ANZ for the apartment, maybe that could go up slighty?



So if it all goes through I would be much better off especially if I cancel the card as I would be saving over $300 on that fee.

It would have been quite simple but when she realized I was on I/O then that is when she said she would need to see income etc as I'm self employed. So I have a phone meeting on Thursday to go through somethings and then I have to go into the branch again Friday. So it's not that simple but I told her if it's complicated it is not worth bothering about but she assured me it is not. Yes she did ask how my business was going to, I said good of course!

 

[Rolf Latham]

OK, here is the deal, I went and seen them today...

I'm on 6.6% currently with 2 properties but one property is about to be settled in about 3 weeks (just after the break free fee due date)

Normally if I change I would lose the discount but I was told I can go onto a Simplicity account and still pay 6.6% (variable)

The credit card will cost around $80 per year but I might cancel it and use a debit card

I will have to pay about $5 per month for account fees

So if it all goes through I would be much better off especially if I cancel the card as I would be saving over $300 on that fee.

It would have been quite simple but when she realized I was on I/O then that is when she said she would need to see income etc as I'm self employed. So I have a phone meeting on Thursday to go through somethings and then I have to go into the branch again Friday. So it's not that simple but I told her if it's complicated it is not worth bothering about but she assured me is not. Yes she did ask how my business was going to, I said good of course!

be aware that simplicity does NOT have capacity for offset

Any time you sneeze with ANZ its a credit critical process ( ie ned app, new credit etc) so I have fingers crossed you dont have to go through that

ta
rolf

 

[Bigtone]

be aware that simplicity does NOT have capacity for offset

Any time you sneeze with ANZ its a credit critical process ( ie ned app, new credit etc) so I have fingers crossed you dont have to go through that

ta
rolf

Rolf, as of march 19th they are trialing the tick and flick for interest only renewals, subject to satisfactory conduct last 12 months

finally they have woken up to the amount of business they lose from this process

 

[Rolf Latham]

Rolf, as of march 19th they are trialing the tick and flick for interest only renewals, subject to satisfactory conduct last 12 months

finally they have woken up to the amount of business they lose from this process

tick and flick ?

Tick and flea

ANZ ..............tee hee , sorry I shouldnt be disparaging

ta
rolf

 

[Peter_Tersteeg]

I'm on 6.6% currently with 2 properties but one property is about to be settled in about 3 weeks (just after the break free fee due date)

Normally if I change I would lose the discount but I was told I can go onto a Simplicity account and still pay 6.6% (variable)

What is your total borrowing with the ANZ going to be?

The simplitity plus is an okay product and reasonably priced, but there are some real benefits to the Breakfree packages for some financial profiles. There's a real chance that you're saving $375 which costs you much more at the back end.

 

[HomeBuyAU]

What is your total borrowing with the ANZ going to be?

The simplitity plus is an okay product and reasonably priced, but there are some real benefits to the Breakfree packages for some financial profiles. There's a real chance that you're saving $375 which costs you much more at the back end.

After this other property has settled then just under $200k for the one apartment with them.

They said they would be doing a credit check and yes as Rolf said, I would be transfered from an offset account to a redraw account.

I will deposit my profit from the sale of the other property into that account (less than 50k) and I will travel for a year or 2 and use the savings to live on sometimes so I will need daily access to ATM etc.

So that is my details, what is the best thing for me to do? Should I stop this or would it be worth changing?

 

[devank]

The credit card will cost around $80 per year but I might cancel it and use a debit card. It is free with the break free but I don't like having a card as I end up paying fees even when it's in balance.

I don't think there is much point in wasting your time trying to save few bucks. You will only get to know the problems once you go with some other products. There are few indirect benifits...
For example, their Platinum card gives free travel insurance for the whole family. You can make changes to your loan once every year. You can value your property once a year for free. I'm sure there are many other feature you may want to use which would cost with other products.

 

[HomeBuyAU]

I don't think there is much point in wasting your time trying to save few bucks. You will only get to know the problems once you go with some other products. There are few indirect benifits...
For example, their Platinum card give free travel insurance for the whole family. You can make changes to your loan once every year. You can value your property once a year for free. I'm sure there are many other feature you may use want to use which would cost with other products.

I never knew about the free valuation thing.

With travel insurance, yes that is good as I claimed for a lost smartphone on my last trip. But this time I will be getting a one way ticket as I will travel for a long time. The insurance policy says you must have a return ticket within 4 months so the travel insurance won't be any good to me now.

one thing I found interesting was that she seemed really keen to get me going through with this. Maybe as they won't have to pay fees to the previous MB anymore or she makes a commission herself?